American South Capital Partners is a joint venture between LA-based SDS Capital Group and Louisiana-based Vintage Realty Company that invests in affordable and workforce housing across the southern US.
SDS Capital’s Deborah La Franchi called the strategy both a “compelling investment opportunity” and “a moral imperative for society,” especially in a region where low-income renters in rural and small metro areas struggle to find affordable places to live (for background, see “SDS Capital deploys private equity to finance permanent housing for homeless Californians”).
The partners are raising their third fund and have a goal of closing at $500 million. The fund would finance approximately $1.5 billion in multifamily housing development, or about 18,000 units, which will be affordable for families earning up to 80% of their area median income.
Asset manager GCM Grosvenor invested in the fund through several pension-backed vehicles.
Workforce housing
American South Capital’s third fund is a continuation of its American South Real Estate Fund series, which raised a combined $234 million for its two prior funds. GCM Grosvenor also backed the second fund.
The first two funds have deployed $200 million in 29 projects supporting the development of 7,500 affordable and workforce housing units. Most units are occupied by households earning less than 80% of their area’s median income.
