Joint Venture Buys 2 North Charleston Affordable Housing Properties

A new joint venture acquired 104 affordable housing units in North Charleston for $15M, preserving workforce housing with plans for major improvements. (Photo/Tesatura Capital)

A recently formed joint venture has acquired two affordable housing properties in Charleston County with financing totaling $15 million.

Tesatura Capital LLC, Ellavoz Impact Capital LLC, the Ellavoz Neighborhood Homes Fund and The Community Preservation Corp. have acquired Canopy at the Element and Canopy on Ashley in North Charleston, with the goal of preserving workforce and affordable housing in a rapidly appreciating region of the state, according to a news release.

The properties, which are located just one mile apart, have a combined 104 two- and three-bedroom townhomes that serve the housing needs of the local community, the release stated. The transaction ensures that these properties will remain attainable for existing and future residents.

In addition to preserving the properties as affordable housing, the partnership plans to make meaningful capital improvements to the properties to increase energy efficiency, add physical amenities, and promote community building among the residents, the release stated.

“This investment showcases our ability to execute on our vision to preserve and enhance much-needed workforce and affordable housing in South Carolina,” Allie Zamfir, managing principal, Tesatura Capital, said in the release. “We look forward to implementing programming and providing resources to strengthen these communities and ensure the residents are proud to call these places home.”

Canopy at the Element, located at 8101 Honeysuckle Lake Drive, is a 90,000-square-foot, 72-unit apartment complex spanning 90,000 square feet. The community consists of two- and three- bedroom townhomes with modern interior finishes and is situated within close proximity to major thoroughfares. Residents benefit from a range of amenities, such as laundry facilities and storage spaces, in addition to access to quality schools, shopping, and dining.

Canopy on Ashley, located at 3360 Ashley Phosphate Road, is a 35,200-square-foot, 32-unit apartment complex. Each two-bedroom apartment is designed with updated finishes, spacious layouts and abundant light. In addition to the living spaces, the property is conveniently located near shopping, dining and entertainment options.

Jeffrey Crum, chief operating officer, Ellavoz Capital, said that “these acquisitions build on our firm’s commitment to making meaningful impact investments that support the preservation and creation of workforce and affordable housing units.”

Tesatura and Ellavoz formed a joint venture in 2024 with the goal of creating and preserving affordable housing throughout the Carolinas while the population of the region continues to grow. This was the joint venture’s first acquisition. The partners plan to continue their acquisitions in the Charleston MSA and in other key markets of South Carolina in 2025 and beyond.

“At a time when cities of all sizes are struggling with a crisis of supply and affordability, CPC is focused on investing in the long-term stability and preservation of housing that serves the needs of our communities,” said Tell Metzger, senior vice president, Equity Investments, CPC, said in the release. “We are proud to be supporting the work and growth of two mission-aligned partners and helping to preserve the affordability of 104 units of housing that will serve the North Charleston community for years to come.”

CPC provided a $5 million equity investment to aid in the acquisition and preservation of the two properties, the release stated. CPC’s Equity Investment platform seeks to address the growing national housing crisis through investments in the preservation and creation of high-quality housing at affordable and workforce rents. The company works carefully to deploy its capital to help grow the capacity of the affordable housing industry by supporting emerging sponsors, with a focus on long-term ownership of multifamily buildings to ensure that the properties remain financially strong and physically sound, the release stated.

The sponsors worked with Walker & Dunlop to arrange Freddie Mac financing, according to the release. Total financing across both assets was approximately $10 million. The transaction was led by Walker Layne, Austin Sneed, and PJ McDevitt. This transaction features a strong example of Walker & Dunlop’s commitment to supporting high-capacity emerging managers alongside Freddie Mac’s mandate to expand access to affordable housing.

To further support its mission, the Partnership was awarded a grant through Charleston County’s Affordable Housing Land Acquisition Grant program, the release stated. These funds are a critical part of the capital stack used to support the noted capital improvements associated with the investment’s business plan.