The Fund, managed by Los Angeles– based at SDS Capital Group, provides 95% of the capital of PSH projects developed by RMG Housing; RMG’s partners provide the remaining co-investment capital. The project will not require any other source of funding. The Fund’s “one-stop-shop” funding approach dramatically reduces the time usually required to underwrite and close funding for such HSP projects from an average of 5-7 years for most similar projects to around 24 months, from subscription to tenant occupancy.
“This is our seventh PSH investment with RMG and our third project that we have funded with a local partner church. We are delighted to support Bethel Baptist Church mission to provide for members of their surrounding community who need it most,” said Deborah La FranchiFounder and CEO, SDS Capital Group.
The speed of execution and the efficiency of the Fund to finance a project are atypical in an industry characterized by the need for a multitude of sources of financing which can take years to aggregate. Another key point of distinction for the SHF Fund is its emphasis on investing exclusively in financially viable long-term projects. This requires that development costs per PSH unit not exceed $200,000compared to the $500,000 average costs currently observed on the market.
The SDS Supportive Housing Fund is on track to fund a total of 1,800 PSH units, primarily in the Los Angeles region. To date, the Fund has financed seven projects totaling 310 newly constructed units of PSH.
The site, located at the corner of 104and and San-Pedrohas belonged to Southside Bethel Baptist Church for over 64 years.
“Our partnership with Southside Bethel Baptist Church is a great example of the private sector and the faith community working together to serve the community with even greater impact,” said the founder of RMG Housing. Tim Roth.
Full press release
Learn more about the SDS Supportive Housing Fund
[email protected]Tel: 323.376.8961
SOURCE SDS Capital Group