New Fund Aims to Create Middle-Income Housing Opportunities

The initiative, which involves Microsoft, Freddie Mac, Berkadia, and others, buys three Seattle-area properties.

*Urban Housing Ventures’ Fund I has acquired Waterscape apartments in Kirkland, Washington.*

A new fund has acquired three multifamily communities in an effort to expand middle-income housing opportunities in Bellevue and Kirkland, Washington.

Urban Housing Ventures (UHV) announced that it has closed its first fund in partnership with Microsoft, Washington Federal, Washington Trust, and Stream Real Estate, and financing provided by Berkadia and Freddie Mac.

The initiative enables investors to buy existing market-rate apartments and then lower up to 40% of the units to middle-income levels without losing long-term financing viability for the investors, according to UHV. Led by management from Seattle-based Stream Real Estate, UHV is a privately funded company.

UHV’s Fund I acquired three Class A properties—Aventine and Borgata Apartment Homes in Bellevue and Waterscape in Kirkland with 335 units. Following its plans, UHV said it is converting 40% of the apartments to target individuals and families earning 60% to 80% of the area median income (AMI).