Middleburg Closes First Workforce Housing Fund With Atlanta Portfolio
The fund closed with the $91 million acquisition of three apartment communities in Atlanta, GA.
VIENNA, VA—Middleburg, a locally-based investment, development and management firm, has closed on its Middleburg Workforce Housing Fund with the $91 million acquisition of three apartment communities in Atlanta, GA.
The fund, announced in January 2019, was launched with the contribution of a previously acquired property, Vesta Derby Oaks, in Louisville, KY. Including debt, the fund deployed approximately $120 million across all four properties. For the Atlanta portfolio, Middleburg secured construction financing from KeyBank Real Estate Capital Community Development Lending and Investment (CDLI) and Capital Bank.
The Atlanta properties include:
- The Grove (Vesta Red Oak) a 220-unit community, currently vacant, at 5100 Welcome All Rd.
- Park at Bouldercrest (Vesta Bouldercrest), a 438-unit community, currently vacant, at 26 Bouldercrest Ln, SE.
- Majestic Park (Vesta Adams Park), a 298-unit community, approximately 15% occupied, at 1991 Delowe Dr., SW.
These properties are reflective of the company’s decision to push in the direction of workforce housing, Managing Partner Chris Finlay tells GlobeSt.com.
“We will be identifying and investing in opportunities to renovate and preserve workforce housing, targeting the sector of the population earning 70% to 100% of median income in a given area,” he says. “The inventory of these assets is shrinking dramatically and we intend to position Middleburg to make a difference in the availability of these communities.”
Middleburg now plans to renovate the properties in its first fund with an emphasis on maximizing energy efficiency. In addition, Middleburg will provide community programs such as job fairs, after school programs, and continuing education for adults. “Our holistic approach will transform these properties and also the surrounding communities,” Finlay says.
At the same time Middleburg has initiated conversations with social impact focused institutions and accredited investors to participate in its next community impact fund, Middleburg Community Impact Fund II, which will also have a focus on workforce housing throughout the Southeast US.