San Francisco-based investment firm Belveron Partners, which focuses on affordable housing, is fundraising for its seventh fund, Belveron Flagship Fund VII. The firm has a $350 million target for the fund.
The fund’s initial closing in the first quarter of this year raised $103 million from existing investors. Belveron expects a final close for the fund in the fourth quarter of 2024. Two earlier funds, Belveron Partners Fund V and Belveron Partners Fund VI, raised $297 million and $280 million, respectively. Belveron Partners Fund VI closed in January 2021 and exceeded its initial target of $250 million with investments from a combination of institutional investors, family offices and individuals. At that time, the firm stated it planned to use the fund to acquire and preserve approximately 5,000 units of affordable and workforce housing over a three-year period in the Northeast, Mid-Atlantic and southwest. Belveron, which has regional offices in New York City and Austin, Texas, has raised more than $1 billion in equity across six funds since 2007.
Two California properties
Belveron is expanding its holdings on the West Coast with the purchase of two affordable housing properties in Southern California totaling 148 units. The properties will be preserved as very affordable Section 8 housing. The firm teamed up with the Foundation for Affordable Housing, a family of nonprofit entities that have helped develop and operate more than 150 affordable housing communities in California, for the purchase of Presidio Park in Santa Barbara, Calif., and Pacific Terrace Apartments in Midway City, Calif.
Capital One originated two Fannie Mae loans for the purchase of both properties. The acquisition of Presidio Park was financed by a $16.5 million loan and the purchase of Pacific Terrace was financed with a $27 million loan.
Located at 15000 Pacific St. in Midway City, Pacific Terrace is the larger of the two properties with 98 units of senior housing. Presidio Park, located at 420 E. De La Guerra St. in Santa Barbara, is a garden-style community with 50 units.
Belveron has brought on a new property management firm, Quality Management Group, and is planning to invest about $30,000 per unit to improve the physical condition of both properties, with a focus on activating community spaces and modernizing the apartments. The upgrades are aimed at improving the quality of life for the residents and securing long-term affordability at both properties.
Other deals
In June 2021, Belveron sold Bedford Manor Apartments, a 108-unit affordable community in Shelbyville, Tenn., to Community Preservation Partners for $6.1 million.
Belveron boosted its East Coast presence in October 2020 by acquiring a controlling interest in affordable housing specialist Conifer Realty. The deal added 194 properties and 15,340 units across New York and New Jersey to Belveron’s portfolio. Earlier that year, Belveron and partners LIHC Investment Group and Camber Property Group acquired an affordable housing portfolio in the Bronx, N.Y., for 1,275 for $166 million.
