Two Atlanta-based developers working with the Reinvestment Fund join forces to preserve affordable housing

In a joint venture, two Atlanta-based real estate developers are partnering to acquire, renovate and re-stabilize Peoplestown Plaza in the Summerhill neighborhood. The multimillion-dollar project supported by the Reinvestment Fund and led by two BIPOC-owned development companies – Atlantica Properties and Domos – represents a significant shift toward preserving affordable housing in the community.

Mission-aligned developers acquire Peoplestown plaza

Summerhill is located just south of Downtown Atlanta and is surrounded by some of metro Atlanta’s most vibrant and desirable neighborhoods, including Grant Park, Cabbagetown, Inman Park, and Old Fourth Ward. The property has long been considered community property. The 94-unit multi-family apartment complex includes six two-story residential buildings, as well as a free-standing rental office building and surface parking. According to census data collected by PolicyMap, an affiliate of the Reinvestment Fund, the predominantly black neighborhood has seen significant demographic 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 resident-led nonprofit organization focused on housing and economic development. The two organizations 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 their strong experience in repositioning LIHTC properties in their extended periods of use. .

Initiative to increase diversity in housing sector brings together two developers

Dunn and Alexander are two of nine members of the Growing Diverse Housing Developers (GDHD) initiative cohort 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) to work with America’s leading real estate developers to create affordable housing solutions and increase diversity in a sector dominated by by white men. According to a recent study, only 1% of businesses in the real estate industry are black-owned and only 4% are Hispanic-owned.

The Reinvestment Fund supports its nine cohort members with flexible and creative financing solutions designed to help developers grow their businesses and create more equitable communities. In the second year of the initiative, the Reinvestment Fund continues to deepen its knowledge of how to best support developers in pursuit of a common goal of affordable housing equity and increased diversity in within the housing sector. Under this initiative, developers are invited to meetups, meetings, and conferences that help them grow their network and raise awareness of their business.

This Atlantica/Domos partnership came to fruition following a GDHD meeting in Atlanta and is the first time that two members of the cohort will be partners in a development project. According to Robert Cox, Managing Director of Community Lending at the Reinvestment Fund, “Each developer brings unique expertise, vision and resources to the partnership. Together, they can create innovative real estate solutions that benefit all stakeholders while growing each of their own businesses.

Collaborating on this development project is an important milestone for the GDHD program, especially given the partners’ commitment to maintaining affordable rates for all units. 39 units must be affordable to residents at 50% of area median income and the remaining units must be affordable to residents at 60% of area median income through 2029.

Building on 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 increase their impact in Atlanta and the city is directly supporting this project.

Commenting on the project and the support of the Reinvestment Fund and partner organizations, Darion Dunn said, “It is 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 are excited to enhance this vital community asset. We extend our thanks to our financial 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 participating developers on the Reinvestment Fund website: Growing Diverse Housing Developers (GDHD) Initiative

This is sponsored content.

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