AION Partners and Vintage Strategies Announce $700 Million Joint Venture Focused on Workforce Housing Expansion

AION Partners and Vintage Strategies Launch $700 Million Workforce Housing Initiative

In a significant move aimed at addressing the ongoing crisis in attainable housing, AION Partners has partnered with Vintage Strategies at Goldman Sachs Alternatives and a global institutional investor to embark on a major recapitalization project. This announcement, made on December 2, 2024, marks a pivotal moment for workforce housing in the Mid-Atlantic region, with plans to inject nearly $700 million into the AION 12 Portfolio, which comprises 3,962 apartment units across New Jersey, Pennsylvania, Delaware, Maryland, and Virginia.

Understanding the Recapitalization

The recapitalization process is designed to enhance the quality and viability of workforce housing through proactive asset management and strategic financial oversight. AION Partners boasts an impressive track record of success in this sector and intends to build on these achievements by focusing on improving living conditions and accessibility for middle-income families. This commitment is crucial in light of the significant under-supply of affordable housing options currently facing many communities.

Expanding the Vision: A Joint Venture

The recapitalization effort is only one part of AION's broader strategy, which includes forming a strategic joint venture to bolster workforce housing further across the eastern United States. This venture aims to achieve $1 billion in value-added multifamily acquisitions, eyeing the addition of 4,000 to 6,000 new apartment units. Backed by a substantial $300 million equity commitment, the joint venture will feature a unique financial structure where a global institutional investor will hold a 49% stake, while AION Value Add III LP, part of AION's third discretionary fund, will possess a 51% share. Notably, Goldman Sachs Alternatives is slated as an investor in AION Value Add III LP, with initial investments expected to commence in the fourth quarter of 2024.

AION Partners’ Commitment to Community

Michael Betancourt, founding partner and Managing Director of AION Partners, emphasized the necessity for such partnerships as the demand for affordable housing continues to escalate. "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," he stated. This approach aims to amplify AION’s impact in regions with heightened housing demand, reinforcing their mission to enhance community living standards.

The AION Operational Model

AION's operational model is notably comprehensive, incorporating extensive in-house management and construction capabilities through its proprietary divisions, AION Management and AION Construction Management. This vertically integrated approach ensures that the company can oversee quality property management and execute value-added improvements effectively. The goal remains clear: to create and maintain high-quality, affordable homes that enhance the living experience for residents while driving long-term value for investors.

About AION Partners

Founded in 2001, AION Partners is recognized as a key player in the multifamily housing sector, managing a portfolio valued at approximately $3.4 billion. With a primary focus on value-add and workforce housing, AION operates across the Mid-Atlantic, Midwest, and Upper Southeast regions of the United States. The company currently oversees a substantial portfolio of 20,000 units, emphasizing acquisition, renovation, and meticulous management in areas where housing supply is constrained.

AION's mission goes beyond profitability; it centers on enhancing community living, ensuring that affordable housing solutions contribute positively to the neighborhoods it serves. As AION Partners and Vintage Strategies embark on this monumental venture, they pave the way for transformative growth in workforce housing across the eastern United States, significantly benefiting many families and communities in need.