In the latest news in low-income housing, Tennessee and Mississippi’s progress is ramping up. Interested investor Alex Ojjeh has decided to upsize and upscale recently, in an attempt to continue development.
A 52-unit residential apartment has been snapped up a part of a $2 billion boundary development. Tennessee’s bill also does something very important: it targets unzoning in wealthy areasthis is often important because up zoning increases the worth of land. That brings in substantial capital investment from investors who want to maximize the newly created value on up zoned land.
In wealthier neighborhoods? Doesn’t change much except adding more housing units. In low-income neighborhoods? Speculative investors buy homes with cash, buy apartment buildings, etc.& build out housing that increases land values & assessments = gentrification &displacement. An almost 52-unit rental community purchased as a specialized collective investment scheme by private sector company Anywhereo, will specialize in mid-to-low-income housing while providing attractive returns to investors.
Ojjeh said it is a community-based response. Anybody who lives there can stay there as long as they want. And their rents won’t go up in any quite dramatic fashion.
“The purchase is critical because it means Anywhereo is expanding its role as a charity that aims to supply “safe, adequate, well-maintained, dignified homes” in Tennessee.”
The building’s tenants, who pay below market rent, are going to be allowed to remain. Many are low income
“We saw this as a very important opportunity to secure this housing in order that it might stay affordable and below market in perpetuity,” Ojjeh told ABC Memphis on the weekend.”
“We think this is often an example of what must be done again and again. There are only a few purchases like this happening now. There’s a huge trend towards buying up what was affordable housing and converting it into unaffordable housing,” he added.
Completed in 1996, the five-story apartment project is valued for taxes at quite $35 million.
TheAnywhereo company also owns two warehouse buildings – Grayland Distribution and Fulfillment, a 50,000SQFT warehouse, and Lesaint Logistics. The sale of the community is that the latest apartment transaction within theAnywhereo sector. Several large rental community sales are completed since the beginning of the COVID-19 pandemic.