SDS Capital Group and Vintage Realty Announce First Close for American South Real Estate Fund II |
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LOS ANGELES, July 15, 2021 / PRNewswire / – The management of the American South Real Estate Fund II (ASREF II) Fund, an impact fund focused on revitalizing distressed color communities across the south, announced today the $ 28 million Completion of start-up funding to support their launch of the American South Real Estate Fund II (ASREF II). This fund will invest in ten southern states: Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South carolina, Tennessee and Texas.
ASREF II pursues the successful impact investment strategy of the American South Real Estate Fund I (ASREF I), which was launched by American South Fund Management, LLC (ASFM), a partnership established six years ago los Angeles-based SDS Capital Group and Vintage Realty Company of Shreveport, LA.
The first degree of ASREF II, at $ 28 million total, includes Bank of the Ozarks, Cadence bankand Texas Capital Bank.
“We are proud to invest our capital in revitalizing emerging, diverse communities in the South,” said Eric Gustafson, Investment Relationship Manager, Bank of the Ozarks.
ASREF II will invest in projects in emerging urban or secondary markets that have strong redevelopment and growth potential. ASREF II will fund multi-family, industrial, office, educational and medical projects in various communities within their 10-state target market locations.
“Our initial ASREF I fund demonstrated that we can invest in underserved communities and achieve both our positive impact goals and the desired financial returns for our investors. We are grateful to our investors for supporting our efforts to make a difference to emerging, diverse communities, “said Deborah La Franchi, Managing Partner of ASFM, Founder and CEO of SDS Capital Group, which operates a range of impact funds in diverse markets administered in the USA.
ASREF II is aimed at project sponsors across the South who need preferred equity or equity for their real estate projects. A key criterion for any investment is that it must deliver strong effects such as revitalizing a low-income community, creating employment opportunities, developing low-income or workers’ housing, and providing health care, education and other services that benefit local communities. The project funding from ASREF II ranges from $ 7.5 – $ 20 million per project.
“Our first ASREF I fund demonstrated that we can invest in underserved communities and achieve both our positive impact goals and desired financial returns for our emerging, diverse communities,” said Deborah La Franchi, Managing Partner of ASFM, Founder and CEO of SDS Capital Group, which manages a number of impact funds in various US markets.
SREF I funded 15 projects across the south and invested in communities with an average demographic minority of 80% (51% African American) and a poverty rate of 36%. The provision of housing for low-income families was another key impact of ASREF-funded projects. ASREF I financed the construction of more than 1,900 housing units, 84% of which are affordable for residents with or below 60% of the median income of the region. Investments by the 15 funds have also created 336 permanent jobs (72% of which are for low-income people or residents of low-income communities) and revitalized 8 dilapidated or abandoned buildings, many of which have been catalytic redevelopments in historic neighborhoods.
Full press release: http://www.sdsgroup.com/
CONTACT:
Sybil MacDonald
1-323-376-8961
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SOURCE SDS Capital Group
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