SHIFT Capital (SHIFT), an industry-leading neighborhood investment group, acquired Dorado Village Apartments, an 81-unit affordable housing property located in Philadelphia, Pennsylvania. SHIFT plans to complete physical repairs and preserve the property as high-quality affordable housing for the long term. The acquisition of the property aligns with SHIFT’s commitment to make community-focused investments that maintain and diversify neighborhood character while maximizing long-term affordability and minimizing displacement.
Dorado Village Apartments was acquired through SHIFT’s innovative NextGen Impact Platform. The NextGen Impact Platform provides investment and training to support impact real estate developers and operators who share SHIFT’s mission to use real estate to invest in underserved neighborhoods and to catalyze inclusive, equitable communities. Under its NextGen Impact Platform, SHIFT is working with Alison Carey, Vice President of Development and Capital Markets with the SHIFT team. Carey led the acquisition on behalf of SHIFT and the project adds to Carey’s track record of affordable housing preservation work.
Dorado Village Apartments, located at 2642 North Marshall Street, consists of 34 two- and three-story buildings on over two acres. Built in 1983, the property contains one- to four-bedroom units for families. The property features amenities such as an on-site management office, community room, laundry facilities, playground, and off-street parking. Three miles north of Center City Philadelphia, the asset sits just south of Lehigh Avenue, approximately one mile east of North Broad Street.
“Dorado Village serves as an important housing resource for the neighborhood and for the broader Philadelphia community,” said Carey. “We are grateful to our partners for their collaboration and support to make this preservation transaction possible. We are committed to providing high-quality ownership and management services to residents of Dorado Village and to stewarding the property for years to come.”
“This transaction represents our multiple commitments to Philadelphia, to preserving key housing affordability and to building up new and diverse managers in the real estate space through our support of Carey,” stated Brian Murray, CEO of SHIFT Capital.
Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services facilitated the sale. Andrew Townsend, Ridge MacLaren, Daniel Bernard and Clarke Talone, investment specialists in Marcus & Millichap’s Philadelphia office, had the exclusive listing to market the property on behalf of the seller, a locally based partnership, and procured SHIFT as the buyer.
“Dorado Village represents Marcus & Millichap’s 17th affordable housing transaction in the Philadelphia area in the past 4 years. Our commitment is to not only match buyers and sellers of affordable and workforce housing, but also preserve the affordable housing stock whenever possible. SHIFT Capital worked diligently to close a smooth transaction and has an excellent plan to improve the property and keep its affordability moving forward,” said Andrew Townsend, Senior Vice President at Marcus & Millichap.
The transaction was financed by a strong team of public and private capital partners, including the U.S. Department of Housing and Urban Development (HUD), Walker & Dunlop, and Freddie Mac. HUD approved the assignment of an existing Section 8 HAP contract, as well as the assumption of existing HUD-funded subordinate debt. Walker & Dunlop as Seller/Servicer for Freddie Mac funded a new senior loan to support the acquisition and repair work.
The property will be managed by Arco Management of Pennsylvania LLC (Arco). Arco began managing HUD-subsidized projects in 1974 and roughly 75% of its projects are HUD-related. Arco has over 22,000 HUD-subsidized units in its portfolio.
The acquisition of Dorado Village Apartments adds to SHIFT’s growing portfolio of affordable housing. In early 2024, in partnership with BrookWynn Capital (BrookWynn), SHIFT closed on the acquisition of Capitol Square Apartments, a 118-unit apartment community in Brentwood, MD. SHIFT and BrookWynn committed to new affordability protections with 65% of units reserved for families earning between 40-60% of area median income (AMI). SHIFT Capital and BrookWynn also partnered with Voyage Investments to acquire a 36-unit multifamily property called Haverford Portfolio in Philadelphia, which provides workforce housing at rents ranging from 60%-80% AMI.
About SHIFT Capital
SHIFT is a neighborhood investment group and Certified B Corporation that executes real estate projects and financing strategies focused on creating just and equitable communities for the long-term. The SHIFT Neighborhood Fund focuses on critical investment in underserved neighborhoods in North Philadelphia. SHIFT’s Catalyst Fund supports the next generation of impact developers, with a focus on women and BIPOC developers. Through these platforms, SHIFT has $350mm+ assets under management, $100mm+ equity under management, and has 1,000+ units developed and in the pipeline.
