Mid Atlantic — AION Partners has partnered with Vintage Strategies at Goldman Sachs Alternatives and a global institutional investor to recapitalize the AION 12 Portfolio of 3,962 apartment units across twelve stabilized workforce housing multifamily properties in New Jersey, Pennsylvania, Delaware, Maryland, and Virginia. This recapitalization builds on AION’s successful track record of creating value by enhancing the quality of workforce housing through intensive asset management and capital discipline.
In addition to this nearly $700 million recapitalization, AION has formed a strategic partnership to increase workforce housing across the eastern United States. The joint venture targets $1 billion in value-add multifamily acquisitions, with plans to add 4,000 to 6,000 apartment units, backed by a $300 million equity commitment. The joint venture will combine a 49% investment from a global institutional investor and 51% by AION Value Add III LP, AION’s third discretionary fund vehicle. Goldman Sachs Alternatives will be an investor in AION Value Add III LP’s first close slated for the fourth quarter of 2024.
“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. This partnership allows us to broaden our impact in regions where demand is strongest,” said Michael Betancourt, founding partner and managing director of AION Partners.
Since 2011, AION has acquired and redeveloped over $3.9 billion in workforce housing, comprising more than 29,000 apartment homes. Workforce housing is designed to serve households earning 60% and 120% of the area median income, generally under $75,000, yet despite 60% of the U.S. population falling within this range, there is a notable shortage of investment capital dedicated to housing for this underserved demographic.
AION’s proprietary divisions, AION Management, and AION Construction Management, will continue to focus on quality property management and execution of value-add improvements across the properties.
This recapitalization marks AION’s fifth large-scale transaction, contributing to the firm’s 20,000-unit multifamily portfolio.
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