The investment will convert an abandoned hotel into 303 units of workforce housing
BOSTON, MASSACHUSETTS / ACCESSWIRE / January 8, 2025 / Arctaris Impact Investors, LLC, a national impact investment firm with a 15-year track record in underserved communities, announces an equity investment in a $30 million opportunity zone hotel-to-residential conversion opportunity in downtown Baltimore. Arctaris Impact's investment will be used to convert a formerly abandoned hotel into a vibrant 303-unit multifamily development, addressing the city's pressing housing shortage. The transaction marks Arctaris Impact's fifth investment in Baltimore.
Arctaris believes the investment will also contribute to the City's efforts to reinvigorate downtown Baltimore which is still recovering from the impacts of the COVID-19 pandemic. The development is led by GoodHomes, a New York City-based firm that specializes in distressed hotels to workforce housing conversion projects.
The newly created units are designed to be naturally affordable for households earning up to 80% of the Area Median Income (AMI). This approach is meant to meet the needs of local families and individuals seeking accessible housing options in a rapidly evolving urban landscape.
"The GoodHomes project will supply much needed accessible and affordable housing for the essential workforce employed in Baltimore's Central Business District," said Arctaris Managing Director Anita Graham. "This investment aligns with Arctaris Impact's commitment to underserved communities and its multifaceted goal to address the creation and retention of jobs in Baltimore and support those workers with affordable housing."
"Converting hotels and offices into housing is a favorite challenge in real estate circles, and the former Embassy Suites - originally built as apartments in the 1960s - is an ideal fit," stated Joe Sugiyama, Principal of Real Estate at Arctaris. "Partnering with local designers and a trusted Baltimore builder, our development team is excited to transform this building into quality apartments that reflect the downtown character and offer spectacular city views. This project will deliver quality affordable housing to downtown Baltimore, enhancing its dynamic urban core."
This investment was made in partnership and partially through a multimillion-dollar commitment from Erie Insurance (ERIE). Based in Erie, Pa., Erie Insurance invested in the GoodHomes project as part of a $20.5 million social impact commitment to fund companies and development projects in underserved communities within the company's footprint. ERIE and Arctaris have also partnered together to invest in social impact projects in Lima, Ohio, Pittsburgh and Washington, D.C.
"Erie Insurance is pleased to further its commitment to Baltimore by investing in this large-scale hospitality-to-residential conversion project in the heart of downtown," said Michael Raftis, vice president, corporate taxation at Erie Insurance. "When our team considers social impact investment opportunities, we specifically look for projects and partners that align closely with our values. GoodHomes has a proven track record of transforming fatigued properties into flourishing apartment complexes that provide dynamic communities."
This joint venture highlights Arctaris Impact's interdisciplinary approach to impact investing, combining financial returns with positive social and environmental outcomes.
About Arctaris Impact Investors, LLC
Arctaris Impact Investors, LLC is a national impact investment firm with experience spanning more than 15 years. The firm manages funds which invest in growth-oriented operating businesses, real estate, and community infrastructure projects located in underserved communities. Founded in 2009, Arctaris Impact has partnered with the Kresge Foundation, Harvard Business School Professor Michael Porter's Initiative for a Competitive Inner City, and multiple other foundation, federal and state government agencies to invest in Opportunity Zones, inner cities and targeted rural communities throughout the U.S., with the aim of delivering above-market investment returns alongside positive social impact. For more information visit https://arctaris.com
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Legal Disclaimer Certain information contained in this press release constitutes forward-looking statements. These statements reflect prevailing conditions and our best business judgment as of the date of issuance. As a result, actual results may vary from the projections and should not be relied upon as investment advice.
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Contact Information
Cindy Stoller
Managing Director
cstoller@confluencepartners.com
917-331-0418
SOURCE: Arctaris Impact Investors, LLC
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