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Affordable Units Under Construction
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Years Affordable Housing Experience

Affordable Housing Crisis

Housing is the key to reducing intergenerational poverty and increasing economic mobility. Research shows that increasing access to affordable housing is the most cost-effective strategy for reducing childhood poverty and increasing economic mobility in the United States.

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Increasing access to affordable housing bolsters economic growth. Research shows that the shortage of affordable housing costs the American economy about $2 trillion a year in lower wages and productivity. Without affordable housing, families have constrained opportunities to increase earnings, causing slower GDP growth. In fact, researchers estimate that the growth in GDP between 1964 and 2009 would have been 13.5% higher if families had better access to affordable housing. This would have led to a $1.7 trillion increase in income, or $8,775 in additional wages per worker. Moreover, each dollar invested in affordable housing boosts local economies by leveraging public and private resources to generate income—including resident earnings and additional local tax revenue—and supports job creation and retention.
SHIR's Affordable Housing Solution
Distressed, defunct and in disrepair, aging hospitality assets provide a prime candidate for rehabilitation into Affordable Housing. Individual hotel rooms constitute 75% of what is needed for functional living units. The needed upgrades for these assets can be accomplished in 1/2 to 1/3 of the time of building new housing. Combined with older product unwanted by hospitality brand leaders, the all-in cost for one hotel room converted to one multifamily unit is low enough to offer cut-rate pricing to residents.
The result of this convergence of market factors is a highly desirable product at an affordable price. The small size of the hotel rooms must provide discounts to nearby full-size studio apartments to stay competitive. The monthly rent for converted hotel rooms allow hourly wage workers to realize their own independent living arrangement in desirable areas for significantly less percentage of their income.

AFFORDABLE HOUSING PARTNERSHIPS

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PROJECTS w/ AFFORDABLE HOUSING

The Veer, Austin, TX

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Acquired: December 2020
Type:   Hotel to Multifamily
Unit Count:                         174
Completion:   Est. Q4 2023

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The Alma, Austin, TX

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Acquired:      August 2020
Type: Hotel to Multifamily
Unit Count:                      172

Delivered:           Q3 2022

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The Hedge 2, Austin, TX

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Acquired:          August 2020
Type:     Hotel to Multifamily
Unit Count:                           155
Delivered:                 Q2 2023

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Acquired:        March 2020
Type: Hotel to Multifamily
Unit Count:                      226
Delivered:            Q2 2022

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Sold: Nextloft Apartments, Beaufort, SC

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Acquired:             January 2018
Type:  Ext. Stay to Multifamily
Purchase:                       $5.0MM
Total Capital:               $10.1MM
Unit Count:                              148
Delivered:                     Q1 2020


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Acquired:                   April 2018
Type: Ext. Stay to Multifamily
Purchase:                       $4.5MM
Total Capital:                $7.4MM
Unit Count:                                96
Delivered:                    Q1 2020


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Sold: Terrain Pittsburgh, PA

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Acquired:      December 2015
Type: Ext. Stay to Multifamily
Purchase:                      $6.3MM
Total Capital:              $13.7MM
Unit Count:                              152
Delivered:                     Q2 2018


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