Multifamily owner and operator AION Partners has teamed with Vintage Strategies at Goldman Sachs Alternatives and a global institutional investor on a $700 million recapitalization of 12 of its workforce housing properties with nearly 4,000 units.
In addition to the recapitalization, AION has formed a strategic partnership to increase workforce housing in the Mid-Atlantic region. The joint venture will target $1 billion in value-add multifamily acquisitions, between 4,000 and 6,000 units, backed by a $300 million equity commitment. It will combine a 49% investment from a global institutional investor and 51% from AION Value Add III, the firm’s third discretionary fund. Goldman Sachs Alternatives will be an investor in the fund’s first close slated for this quarter.
“As the undersupply of attainable housing persists, AION’s skill in acquiring and redeveloping workforce communities is essential to providing high-quality, affordable homes that benefit middle-income families and strengthen local economies,” said AION Partners founding partner and managing director Michael Betancourt. “This partnership allows us to broaden our impact in regions where demand is strongest.”
The AION 12 Portfolio recapitalization comprises properties in Delaware, Maryland, New Jersey, Pennsylvania, and Virginia. This marks AION’s fifth large-scale transaction, contributing to its 20,000-unit multifamily portfolio.
Since 2011, the firm has acquired and redeveloped over $3.9 billion in workforce housing—serving households earning between 60% and 120% of the area median income—comprising over 29,000 units.
According to AION, each property has a detailed investment strategy, with the firm renovating and modernizing communities with limited amenities and outdated interiors while maintaining affordability. AION Management and AION Construction Management will continue to focus on property management and value-add improvements across the properties.
