ASREF’s $2.7M investment financed the acquisition of this 224-unit affordable apartment building in New Orleans.
ASREF provided a $2.7M preferred equity investment with VPG Enterprise (“VPG”), for the acquisition and recapitalization of a 224-unit, 3-apartment portfolio, collectively referred to as The VPG New Orleans Portfolio (the “Project”). The Project is located in New Orleans, Louisiana, which is within the New Orleans, LA metropolitan statistical area (MSA). The Portfolio is comprised of 3 apartment communities, 100% of which are affordable at 80% of Area Median Income.
The two sub-portfolios are the beneficiary of Jefferson Parish HOME Funds and City of New Orleans Block Grants, in exchange for the sponsor maintaining 59 units as affordable at 60% Area Median Income (AMI).
| Asset Type | Residential; affordability covenenats require 59 units to be affordable at 60% AMI |
| Development Type | Redevelopment |
| Previous Use | Residence |
| Investment Closing Date | 2020-12-04 |
| Total Development Area | 224 units (269,832 SF) |
| Construction Timeframe | Start: Mar 2021; Finish: Dec 2022 |
$9.6M
$9.6M
$2.7M
$0.6M
$0.6M
$3.9M
Ut tortor pretium viverra suspendisse potenti nullam ac tortor. Posuere lorem ipsum dolor sit amet consectetur adipiscing elit. Tristique risus nec feugiat in fermentum posuere urna nec tincidunt.
VPG ENTERPRISE is a real estate development, construction and management group with a successful track record of developing off-market deal flow and successful execution. The current portfolio is comprised of $27M in assets including single family homes and multifamily apartment units. Through a diverse and empowered team of professionals, VPG serves a broad range of commercial construction clients form small, nonprofit organizations to global Fortune 100 corporations. Industry focuses include residential, healthcare, life sciences, corporate, urban/community, higher education and industrial. VPG is headquartered in New Orleans, Louisiana.
| Location | 1536 Stumpf; 2424 Rev Richard; 3300 Garden Oaks DR |
| Area | New Orleans |
| LMI Community Status | 3 Tracts: 2 Low; 1 Middle |
| Unemployment Rate | 16% |
| Poverty Rate | 25% |
| % Minority | 59% (53% African American) |
Read about Deborah La Franchi's opinion on the New Orleans housing frenzy, as seen in the article featured in NOLA's "The Advocate/Times-Picayune".
Urban Land Institute Magazine interviews SDS Founder and CEO Deborah La Franchi on ASREF I’s investment in black-owned developer VPG.
ASREF’s $4.3 million preferred equity investment in the VPG Portfolio revitalizes and stabilizes Low and Middle-Income census tracts by providing accessible housing. The project created 224 high quality affordable housing units with rents capped at 80% AMI; 59 units will be affordable at 60% AMI.
