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3/20/25
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Los Angeles-based impact fund manager SDS Capital Group has launched SDS Impact Debt (‘SDSID’). This new capital platform provides below-market permanent and construction financing for the preservation and development of affordable housing throughout the United States.
SDSID is expected to finance more than $1 bil of new housing units over the next 18 months. The company is currently focused on closing six financings for 1,427 units of multifamily housing, 54% affordable to families at 80% of area median income or less (“AMI”).
Under Jason Riffe’s direction, managing director of SDSID, this new product line will complement SDS’s current $1.7 bil of assets under management through its five impact funds and its other third-party investment support services. To date, SDS has invested in more than 8,000 housing units across the United States - 72% of them affordable to families making less than 80% of AMI or are permanent supportive housing units for the unhoused.
This innovative impact capital strategy will utilize a variety of private asset-based products to offer financing for a single or pool of assets with terms ranging from three to 40 years, priced at 150-250 bps below current retail debt offerings with an LTV up to 90%.
“We are launching a whole new one-stop program in which affordable housing developers can obtain both their debt and equity under one-roof in states in which SDS is active,” explains Riffe. “This eliminates the traditional and time-consuming process of applying for grants and other public funding that can take years to obtain. By offering a single source of financing with equity options and competitively priced debt, SDS is supplying the two key components of the capital stack, helping to dramatically reduce time and cost to bring an affordable housing project to market.”
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