Identification – Waterford, through its expertise in Essential Housing, developed a relationship with the Dallas Housing Finance Corporation (“DHFC”) to identify opportunities in the City of Dallas to acquire existing Market-rate multifamily projects and convert them into Essential Housing projects offering discounted rents to the areas Essential workers. 

Evaluation – Waterford utilized its national brokerage relationships to begin to scour the market for potential opportunities.  Through these relationships, it was able to identify this Off-Market opportunity and quickly saw its strong potential for the program.  The project offers a superior location with a quality project that will provide clear rental rate benefits for tenants as the project is converted into Essential housing.   

Business Plan – Waterford went through a formal approval process with the DHFC to put a regulatory agreement in place that will deed restrict 90% of the units at the project including 10% of the units for renters who make 60% of the average median income (“AMI”) or less and 41% for renters who make 80% of the average median income (“AMI”).  A long-term ground lease was put in place with the DHFC at closing and the project will be exempt from future property taxes.  Waterford intends to run the project in its current Class A condition while also utilizing a new resident services group to offer a variety of on-site services to tenants.  Furthermore, we will be implementing a host of new measures to improve the Environmental efficiencies of the asset.   

Capitalization – Waterford acquired the project with one of its existing partners, The Vistria Group.  The Vistria Group is a Mission Drive firm seeking opportunities to find innovative ways to create more affordable housing options throughout the United States.  The partnership obtained long-term fixed-rate financing from Freddie Mac via a relationship with Walker & Dunlap.

Asset Management – Waterford will actively oversee the Asset Management of the project while utilizing the property management services of Greystar who will also oversee construction management to improve and enhance the property over time. 

Stabilization – Waterford intends to cash flow and hold the asset for the long term with its partners while providing a quality living experience with more affordable rents for its Tenants.