Fairstead Acquires Rhode Island Affordable Property

Festival Field Apartments. Image courtesy of Fairstead

Affordable housing developer Fairstead has acquired Festival Field Apartments, a 204-unit Section 8 property in Newport, R.I., for $33.3 million. Fairstead financed the purchase of the family apartment property through low-income housing tax credits (LIHTC) and tax-exempt bonds issued through RIHousing, the state’s housing finance agency.

Built in 1974, the property at 90 Girard Ave. was acquired by Sage Apartment Communities from Aspen Square Management in 2012, according to Yardi Matrix. The community consists of six walk-up buildings rising three stories along with two accessory building housing a management office.

Fairstead plains a rehabilitation project that will cost more than $17 million ($85,000 per unit), including the renovation of all roofs, windows, sidings and boilers and the installation of new kitchens, flooring, cabinets and bathrooms in all the units. The company will also develop new Americans with Disability Act (ADA)-accessible units and a modern community center.

Fairstead is active in 14 states and has a portfolio of more than 11,500 units. Last October, the company purchased a two-building portfolio with 214 affordable housing units in the center of New York City’s Harlem neighborhood for $75.5 million.