Two Atlanta-based Developers are Joining Forces to Preserve Affordable Housing
In a joint venture, two Atlanta-based Housing Developers are partnering in the acquisition, renovation and re-stabilization of the Square at Peoplestown in the Summerhill neighborhood. The multi-million dollar project supported by Reinvestment Fund and led by two BIPOC-owned development firms—Atlantica Properties and Domos—represents a significant shift toward the preservation of affordable housing in the community.
Mission-Aligned Developers Acquire the Square at Peoplestown
Summerhill is located just South of Downtown Atlanta and is surrounded by some of the most vibrant and desirable neighborhoods in the Atlanta Metro, including Grant Park, Cabbagetown, Inman Park and Old Fourth Ward. The property has long been considered a community asset. The 94-unit multi-family apartment complex includes six two-story residential buildings, along with a free-standing leasing office building and surface lot parking. According to census data gathered by Reinvestment Fund’s affiliate, PolicyMap, the predominately Black neighborhood has seen significant population change over the past decade—suggesting gentrification pressures.
The property was previously owned by The Integral Group, a recognized industry leader in affordable real estate development, headquartered in Atlanta, and The Peoplestown Revitalization Corporation, a non-profit, resident-led organization focused on housing and economic development. The two organizations hand selected Darion Dunn, Co-founder of Atlantica Properties, and Daniel Alexander, Principal and Co-founder of Domos to acquire the property due to their commitment to affordable housing and strong track record in repositioning LIHTC properties in their extended use periods.
Initiative to Increase Diversity Within the Housing Industry Brings Two Developers Together
Dunn and Alexander are two of the nine cohort members in the Growing Diverse Housing Developers (GDHD) Initiative working directly with the Reinvestment Fund. Funded by the Wells Fargo Foundation, GDHD is a four-year initiative led by four Community Development Financial Institutions (CDFIs) and aimed at working with top U.S. housing developers to create affordable housing solutions and increase diversity in a white-male dominated industry. Only 1% of businesses in the real estate sector are Black-owned and only 4% are Hispanic-owned, according to recent research.
Reinvestment Fund supports its cohort members through flexible and creative financing solutions intended to help the developers grow their businesses and create more equitable communities. In the second year of the initiative, Reinvestment Fund continues to gain deeper insights into how to best support developers in pursuit of a common goal of affordable housing equity and increased diversity within the housing industry. As a part of the initiative, developers are invited to meetings, convenings, and conferences that help build their network and provide exposure to their business.
This Atlantica/Domos partnership came to fruition following a GDHD convening in Atlanta and is the first time that two cohort members will be partners in a development project. According to Robert Cox, Reinvestment Fund’s Managing Director of Community Lending, “Each developer brings their unique expertise, vision, and resources to the partnership. Together, they can create innovative real estate solutions that benefit all stakeholders while also growing each of their own businesses.”
The collaboration in this development project is a significant milestone for the GDHD program, especially given the partners commitment to maintaining affordable rates for all units. Through 2029, 39 units will be required to be affordable to residents at 50% of the area median income and the remaining units affordable to residents at 60% of the area median income.
Building Upon a Legacy
With the growing demand for affordable housing and Mayor Andre Dickens commitment to create 20,000 units of affordable housing—experienced, developers like Dunn and Alexander are well positioned to scale impact in Atlanta and the City is directly supportive of this project.
On the project and support of Reinvestment Fund and partnering organizations, Darion Dunn stated, “It’s a privilege to continue Integral’s legacy at The Square at Peoplestown, ensuring high-quality, affordable housing for years to come…In partnership with Domos, we’re excited to enhance this vital community asset. We extend our thanks to our lending partners, Reinvestment Fund and Community Foundation for Greater Atlanta, for their unwavering support and belief in our mission.”
You can learn more about the initiative and the participating developers at Reinvestment Fund’s website: Growing Diverse Housing Developers (GDHD) Initiative