with investment from the AIC CEI-Boulos Opportunity Fund, a partnership between Allivate Impact Capital® and CEI-Boulos Capital Management
DALLAS - (January 28, 2024) - The AIC CEI-Boulos Opportunity Fund, a joint venture with Allivate Impact Capital®, a subsidiary of Woodforest Financial Group, Inc., and CEI-Boulos Capital Management, announced a majority equity investment in the Marcus Affordable and Workforce Housing Project, which will bring 76 units of affordable, transit-oriented and sustainability-focused housing to the underinvested, predominantly Black and historically redlined Cedars neighborhood in South Dallas.
The urban infill project will provide much-needed, long-term affordable housing for the neighborhood. Through a Public Facilities Corporation (PFC) tax exemption agreement with the City of Dallas, 51% of the units will be formally rent-restricted and income-restricted for a period of 60 years to be affordable to renters earning 60% to 80% of the Area Median Income (AMI) or below. The remaining units will be rented as naturally occurring affordable housing but will not be formally restricted.
84% of households in the census tract where the development is located are occupied by renters, far surpassing the citywide average of 59%. Of these renters, 36% are “housing cost burdened,” meaning they spend more than 30% of their income on housing. 13% are “severely housing cost burdened,” meaning they spend over 50% of their income on housing. The census tract where the project is located is designated as an “Area of Economic Distress” by the U.S. Department of Treasury.
The project will consist of a mix of 16 studios, 44 one-bedroom and 16 two-bedroom units, to serve the needs of a wide range of households with a focus on working-class individuals and families.
The project is being developed by Savoy Equity Partners, a Dallas-based real estate development company that specializes in multi-family affordable and workforce development throughout Texas. Savoy has developed 22 properties totaling 934 units and currently has seven properties under development totaling 828 units. Of these 29 projects, 27 are in the City of Dallas, demonstrating the firm’s deep commitment to and expertise in the Dallas market. The Marcus will build on Savoy’s track record in completing community-minded affordable and workforce housing projects with the goal of contributing to the revitalization of the area.
Noelle St. Clair Lentz, CEO and Managing Director of Allivate Impact Capital®, said, “The housing affordability crisis continues to plague low-income families and workers in South Dallas. Thank you, Savoy Equity Partners, CEI-Boulos Capital Management, and the City of Dallas for collaborating with our team to create these 76 affordable housing units to help revitalize the community, open access to transportation and jobs, and provide accessible and affordable housing for individuals and families.”
“CEI-Boulos Capital Management is dedicated to working with local communities to revitalize neighborhoods that have been overlooked or underinvested by supporting impactful developments like the Marcus Affordable and Workforce Housing Project,” added Sam Spencer, CEO and Managing Director of CEI-Boulos Capital Management. “The AIC CEI-Boulos Opportunity Fund is proud to be partnering with Savoy Equity Partners to help bring much needed transit-oriented long-term affordable housing to the Cedars neighborhood.”
Barrett Linburg, a partner and co-founder of Savoy Equity Partners, shared: “The Marcus marks Savoy’s first development in the Cedars neighborhood, and it won't be our last. We’ve seen firsthand through our Bishop Ridge portfolio how concentrating multiple high-quality developments within one neighborhood can create meaningful positive change. By bringing that same proven approach to the Cedars, starting with the Marcus, we're demonstrating our long-term commitment to this historic neighborhood. Our partnership with the City of Dallas through the PFC structure allows us to preserve affordability while delivering the kind of thoughtful, sustainable development that can catalyze neighborhood revitalization.”
The project will focus on environmental sustainability and will meet National Green Building Standard (NGBS) certification.
The project is transit-oriented with the site located within a 3–15-minute walk of multiple public transit options managed by the Dallas Area Rapid Transit, including bus, light rail and the Dallas Streetcar system that connects with Downtown Dallas. These transit options will provide residents of the Marcus access to eco-friendly commuting with frequent service to all of Dallas’s major neighborhoods, employers, cultural institutions, healthcare facilities and educational institutions.
The four-story, garden style project will replace a largely vacant lot that includes a blighted 1.5K square foot graffitied structure, which represents an ongoing liability to the neighborhood. Savoy further plans to upgrade sidewalks from non-existent or derelict conditions to 10-foot-wide pathways, surpassing the city-standard 6-foot sidewalks. These upgrades will greatly improve pedestrian safety and accessibility for residents.
The project is aligned with various community and economic development plans and initiatives of the City of Dallas and will contribute to the City of Dallas’s goal to revitalize the Cedars neighborhood in a manner that promotes sustainable, transit-oriented and equitable growth.