Middleburg Launches $75M Workforce Housing Fund
The company's strategy is to purchase and rehabilitate distressed communities in the Southeast and Mid-Atlantic regions, starting with the previously acquired Vesta Derby Oaks located in Louisville, Ky.
Middleburg has completed its initial closing on Workforce Housing Fund and will contribute Vesta Derby Oaks, a previously purchased community in Louisville, Ky., to the fund as its first property. The firm will continue to raise capital for the fund, which is expandable to $75 million, giving Middleburg the opportunity to invest in $250 million of communities.
The company’s strategy is to purchase and rehabilitate physically and/or operationally distressed workforce housing in the Southeast and Mid-Atlantic regions, suffering from issues such as deferred maintenance, high vacancy and poor management.
Middleburg has partnered with KeyBank for construction financing of Vesta Derby Oaks, a $30 million apartment redevelopment. The community offers 428 two-bedroom units and was 15 percent occupied at the time of the sale. Many of its buildings were abandoned, creating blight and crime risk for the neighborhood. The firm plans to introduce professional management, boost security, complete renovations that will include all new systems, roofs, exteriors and interiors, and create a mix of one-, two- and three-bedroom units, totaling 418 apartments.
“The lack of supply of quality rental housing affordable to working families and individuals has reached crisis levels. Our investments through the fund not only provide high quality rental housing, but achieve strong returns for our partners, who appreciate the social impact of community building,” said Chris Finlay, managing partner at Middleburg, in a prepared statement. “Vesta Derby Oaks is a great template for how we can create real transformational impact in the community, with far reaching benefits.”
Last May, Middleburg tapped Danielle West as the firm’s regional property manager for new development. In this role, West will support the management of the company’s newly built communities in South Carolina, Georgia and Tennessee, and will report to President Duane Wooldridge.
Image courtesy of Middleburg