Turner Impact Capital and Kalterra Capital Partners have acquired a 376-unit multifamily community in McKinney, Texas, to help address the region’s affordability crisis.
Completed five years ago, Kinstead is a garden-style community comprising six three-story buildings on 14 acres in a high-demand area. Apartments are equipped with smart-home systems and modern appliances, and residents have access to two swimming pools; a clubhouse with a catering kitchen, a gaming room, and a yoga studio; individual and shared workspaces; a dog park and pet spa; and electric vehicle charging stations. The community has historically commanded rent levels out of reach for many working families, according to the firms.
The joint venture between Turner Multifamily Impact Fund III and Kalterra, a private real estate company, will convert 191 units into income-restricted housing for renters earning between 30% and 80% of the area median income (AMI). This marks the first time that Turner Impact Capital, one of the nation’s largest real estate investment firms, is converting market-rate apartments into affordable housing.
“The Kinstead acquisition will add to the supply of urgently needed, high-quality housing that’s affordable for working families in one of the highest-demand markets in the country,” said Turner Impact Capital CEO Bobby Turner. “Working with private and public partners, we are adapting our successful market-driven model to deliver innovative, scalable, and sustainable solutions to address the nation’s severe housing affordability gap.”
Under an agreement with the Housing Authority of the City of McKinney, the joint venture holds a 99-year master lease and will restrict 29 units to households earning 30% of the AMI and 162 units to households earning 80% of the AMI. The remaining 185 units will remain market-rate.
“We see an opportunity to meet housing needs through thoughtful partnership-driven acquisitions,” said Nic Balsamo, partner at Kalterra. “Our collaboration with Turner Impact, the city of McKinney, and its housing authority allows us to deliver lasting affordability in a thriving area, through a transparent structure that benefits both residents and the broader community. It’s a model we believe can be scaled across Texas.”
Turner Multifamily Impact Fund III owns more than 1,850 units in six markets and continues to announce new acquisitions. This acquisition also marks Turner Impact Capital’s investment in over 2,000 units in the Dallas metro. Dallas also is home to TI Communities, an affiliate that provides property management services to the firm’s properties nationwide. In addition, Kalterra Capital Partners is based in Dallas and is expanding its platform to include strategic acquisitions that preserve and enhance housing affordability.
TI Communities will serve as property manager for Kinstead and will offer enrichment programs, such as youth education, adult financial literacy, and health care and wellness services to enhance residents’ quality of life.
