SILVER SPRING, MD. — Donaldson Impact Investors, in partnership with New York Life Investment Management and nonprofit developer Housing Initiative Partnership, has acquired Yorkshire Apartments in Silver Spring for $79.4 million. The buyers used a tax-abatement program to transition the community to affordable from market-rate. Half the apartments at the 326-unit community are reserved for tenants earning up to 60 percent of area median income with the remainder of units remaining priced at market rates.
The transaction was made possible through Montgomery County’s Payment in Lieu of Taxes (PILOT) program, which provides long-term tax abatements that support housing affordability. The project was capitalized through a combination of the PILOT structure, market-rate equity provided by New York Life Investment Management and Donaldson Impact Investments and financing through JP Morgan. JLL served as the broker and also assisted in securing debt for Donaldson. The community welcomed its first residents under the affordable model on June 1.