The Los Angeles-based impact fund manager SDS Capital Group has rolled out SDS Impact Debt (SDSID), a capital platform designed to provide below-market permanent and construction financing for the preservation and development of affordable housing.
According to the company, SDSID is expected to finance more than $1 billion of new housing units over the next 18 months. SDSID 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.
The company added that its impact capital strategy will 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,” said Managing Director Jason 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.”
