Tredway has closed on the acquisition of a 16-property affordable housing portfolio in Texas, with a reported transaction value of $65.5 million. The portfolio totals more than 1,200 apartments and consists of existing rental communities that Tredway is acquiring and recapitalizing. The company states that the recapitalization is intended to preserve and extend long-term affordability for all residents across the portfolio.
The properties are spread across multiple Texas markets, including Alamo, Amarillo, Brownsville, Copperas Cove, El Paso, Fort Worth, Lampasas, Lubbock, Odessa, San Juan, Santa Rosa, and Victoria. Every community in the portfolio is supported by Project-Based Section 8 Housing contracts, aligning the transaction with federally backed affordable housing programs.
As part of the deal, Tredway plans to invest over $10 million in capital improvements throughout the portfolio. These planned upgrades are expected to be deployed across all 16 communities, though specific scopes of work or timelines were not detailed. The capital program is positioned as a key component of the strategy to maintain and improve the quality of the housing while keeping it affordable.
Tredway has brought in Housing Services Incorporated as a partner on the Texas portfolio. Housing Services Incorporated is a non-profit organization that will provide social services to residents across the communities included in the transaction. The specific services to be offered were not outlined, but the non-profit's role is described as delivering social support throughout the portfolio.
Property management for the 16 communities will be handled by Asset Living. The firm has been engaged to manage day-to-day operations of the portfolio, according to the announcement. No additional detail was provided on the management strategy, performance targets, or any changes to on-site staffing or existing management structures.
The acquisition financing is structured as a combination of bridge and Fannie Mae loans arranged by Berkadia. Terms of the loans, including proceeds allocation between the bridge and agency components, as well as interest rates, maturities, and leverage levels, were not disclosed. The financing structure is described only as acquisition loan financing supporting the purchase and recapitalization of the portfolio.
Beyond the Texas transaction, Tredway notes that it has previously acquired and revitalized more than 750 affordable homes in North and South Carolina. The company also reports owning a 350-unit portfolio across West Virginia and Tennessee. No additional details were provided regarding those earlier transactions, such as timing, capital investment, or financing structures.
The Texas portfolio acquisition underscores Tredway's ongoing focus on affordable housing supported by long-term federal contracts, with a stated emphasis on maintaining affordability and investing in existing communities. The combination of capital improvements, non-profit service partnership, third-party management, and agency-backed financing are presented as central features of this latest transaction.
