Massive affordable housing deal

Avanath Capital Partners and MacFarlane Costa Housing Partners have acquired Simpson Housing Solutions ("SHS") and its portfolio of 273 properties, which totals 26,000 affordable rental apartments in 33 states, the District of Columbia and Puerto Rico.

SHS, which was a wholly owned subsidiary of Simpson Housing LLLP, specialized in the development, rehabilitation and management of rental apartment communities that qualify for the federal low-income housing tax credit ("LIHTC"), an indirect subsidy to facilitate private-sector investment in affordable housing. More than half of its 273 properties are located in California.

In the initial phase of what will be a two-phase transaction, ownership of the former SHS portfolio will be jointly held by Avanath Affordable Capital, a wholly owned subsidiary of Avanath Capital Partners, and MacFarlane Costa Housing Partners.

In the transaction's second phase, which is expected to occur later this year, Avanath will acquire sole ownership of SHS' general partnership interests in the investment funds or partnerships that own the 26,000-unit portfolio, as well as a staff of SHS' asset management and partnership accounting professionals.

Following the second phase of the transaction, MCHP will retain SHS' property development, finance and corporate accounting functions and continue to develop affordable housing.

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