Arctaris Impact Investors, Housing Diversity Corp., and United Way of Greater Los Angeles form a new partnership to deliver accessible housing tailored to residents' needs
Arctaris Impact Investors, LLC, a Boston based impact investment firm that supports revitalization projects in underserved communities, announces a lead equity investment in Liv DTLA, a $67 million market-rate affordable housing development in the South Park neighborhood of Los Angeles. The transaction marks Arctaris Impact’s first Opportunity Zone investment in Los Angeles and, together with its partners, is an effort to address downtown residents' critical need for affordable housing.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240305198458/en/
(Photo: Business Wire)
The all-studio housing project, located at 1411 S. Flower Street, is being developed by Housing Diversity Corp., a Seattle-based large-scale multifamily real estate manager. Construction is 85% complete and is expected to consist of 227 units over 8-stories, of which 40% are reserved for extremely low-income and voucher-subsidized households, furthering the partnership’s commitment to accessible housing. The building's amenities include a courtyard, a rooftop deck boasting panoramic views of Los Angeles, and ample bicycle storage for up to 149 bikes, all designed to enhance the residents' quality of life.
Funding for the project includes Arctaris Impact’s $13.6 million equity investment, a $34.9 million loan facilitated by the United Way of Greater Los Angeles' Affordable Housing Initiative, and $18.1 million of equity previously raised through the crowdsourcing real estate platform CrowdStreet and other impact-oriented high-net-worth individuals.
Arctaris and Housing Diversity Corp. share a vision for developing housing units that are both environmentally sustainable and tailored to residents' needs.
“This investment is about providing stability and a brighter future for downtown LA residents. The Liv DTLA property is more than bricks and mortar; it’s offering hope, dignity, and security for those priced out of the American dream,” said Jonathan Tower, Founder and Managing Partner of Arctaris. "Arctaris is committed to creating positive, sustainable change in underserved communities, and this investment is a powerful step forward for the residents of Downtown LA.”
“Arctaris is proud to have partnered with Housing Diversity Corp. and United Way of Greater Los Angeles to finance a mixed income housing project with such a strong affordability component,” said Nihar Sait, Managing Director and Head of Real Estate Investments at Arctaris. “The investment is an example of Arctaris Impact’s ability to forge meaningful public private partnerships and one we hope will serve as a template to direct needed capital toward critical community infrastructure projects.”
"These partnerships reflect and reinforce our mission to create healthy, diverse neighborhoods through housing that contributes to the greater good. They provide a stable financial foundation for Liv DTLA and add to HDC's substantial strategic partnerships designed to address the challenges of housing scarcity for low-to-moderate income households on the West Coast," said Brad Padden, Housing Diversity Corp. Founder and CEO. "This means more housing, and more accessible housing, for people living and working in DTLA."
Additional partners include architect Simon Ha of Steinberg Hart and general contractor Craig Haveson of STS Construction.
Arctaris remains steadfast in its commitment to catalyzing positive change through impactful investments.
For more information on Arctaris and its initiatives, please visit www.Arctaris.com.
About Arctaris Impact Investors, LLC
Arctaris Impact Investors, LLC is a Boston-based impact investment firm with experience spanning more than 14 years.. The firm manages funds which invest in growth-oriented operating businesses and community infrastructure projects located in underserved communities. Founded in 2009, Arctaris has partnered with the Kresge Foundation, Harvard Business School Professor Michael Porter’s Initiative for a Competitive Inner City, and multiple other foundation, federal and state government agencies to invest in Opportunity Zones, inner cities and targeted rural communities throughout the U.S., with the aim of delivering above-market investment returns alongside positive social impact. For more information visit https://arctaris.com or for press inquiries contact Lily@arctaris.com.
About Housing Diversity Corporation
Housing Diversity Corporation is a leading Multifamily Real Estate and Qualified Opportunity Fund manager. HDC’s principal Brad Padden has sponsored 23 real estate development projects over his development career, accounting for the production of 2,800 new multifamily apartments in the Pacific Northwest and Southern California.
About United Way of Greater Los Angeles
United Way of Greater Los Angeles is one of LA's most trusted nonprofits, mobilizing neighbors and investments to support each other in a crisis and build a future where everyone shares in our region’s wealth and prosperity.
About STS Construction Services
STS Construction Services is a highly regarded general contractor with over two decades of experience in commercial and residential construction in Seattle and Los Angeles. Craig Haveson, the founder and president of STS, has refined STS into an organization capable of actualizing projects of all shapes and sizes, and bringing owners’ dreams to life.
Legal Disclaimer Certain information contained in this press release constitutes forward-looking statements. These statements reflect prevailing conditions and our best business judgment as of the date of issuance. As a result, actual results may vary from the projections and it should not be relied upon as investment advice.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240305198458/en/
