Salinas, Calif.—The Community Development Trust (CDT) and Southport Financial Services Inc. have announced a joint venture to purchase an affordable seniors community called Steinbeck Commons in Salinas, Calif. The community is a 100-unit Section 8 property.
This partnership will allow CDT and Southport to implement capital improvements to Steinbeck Commons, including exterior painting, and contribute $450 per unit of additional capital towards future replacements annually.
CDT and Southport have partners on three other affordable properties in Alabama, Oregon and Washington; however, Steinbeck Commons is their first joint venture in purchasing a Section 8 property.
“CDT is a source of capital for experienced operators to expand and preserve their affordable housing portfolios,” Brian Dowling, vice president of community investments, CDT, tells MHN. “Since we’re a double bottom line organization, Steinbeck Commons presented a good opportunity for us to meet our affordable housing preservation objective and also generate a fair return for investors. We were attracted to preserving a property in such a convenient location in downtown Salinas, which is a very walkable community for independent seniors.”
Though it is CDT’s first joint venture with Southport on an affordable community, CDT has previously partnered with LINC Housing Corporation to acquire Pleasant View Apartments, a 60-unit affordable community in Fresno, Calif.