BOSTON & DETROIT--(BUSINESS WIRE)--Arctaris Impact Investors, LLC, a national impact investment firm with a 15-year track record in underserved communities, and Circuit Ave, a minority-owned real estate investment firm, are joining forces to tackle the nation’s critical shortage of affordable housing.
This transformative initiative will breathe new life into hundreds of vacant single-family homes in underserved communities, converting them into safe, quality rental housing for families earning less than 50% of the Area Median Income (AMI). As a first step, Arctaris invested $11 million to revitalize hundreds of vacant single-family properties in Detroit with plans to replicate this strategy in other underserved communities throughout the U.S.
“We aim to amplify Circuit Ave’s successful efforts and significantly increase the supply of high-quality, affordable housing options for underserved families,” said Andrew Gibbs, a Principal of Real Estate at Arctaris. “The partnership is a win for all stakeholders, including families needing affordable homes, existing homeowners living in high vacancy neighborhoods, and local governments looking to stretch returns on subsidized housing investments.”
Beyond providing rental housing, the partnership will also offer residents a pathway to homeownership, contributing to long-term community revitalization and wealth-building opportunities for families. The program, currently focused on Detroit, is poised to expand to other high-vacancy cities nationwide, showcasing a scalable model for tackling the affordable housing crisis.
“Delivering affordable housing to low-income families is a complex challenge, especially in today’s market, but we believe these innovative solutions can make a real difference," said Jonathan Tower, Founder and Managing Partner of Arctaris. “Our partnership with Circuit Ave is a testament to that belief. By transforming vacant properties into quality homes, we're not just providing shelter -- we're empowering families to build stable lives and pursue economic opportunities.”
“We founded Circuit Ave to address a disturbing contradiction across cities nationally -- neighborhoods share both a severe affordable housing shortage and a vacant home on nearly every block,” said Circuit Ave CEO, Ian Batts. “Partners like Arctaris make it possible to create inclusive housing options while restoring neighborhoods and contributing to local economic resurgence.”
This joint venture highlights Arctaris Impact's interdisciplinary approach to impact investing, combining financial returns with positive social and environmental outcomes. It also furthers the reach of The Kresge Foundation, an anchor partner of Arctaris and champion of equitable community development.
For more information on Arctaris and its initiatives, please visit www.Arctaris.com.
About Arctaris Impact Investors, LLC
Arctaris Impact Investors, LLC is a national impact investment firm with experience spanning more than 14 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 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 or for press inquiries contact Lillian@arctaris.com.
About Circuit Ave
Circuit Ave is a Detroit-based real estate investment firm dedicated to revitalizing neighborhoods by transforming vacant properties into quality, affordable housing. Implementing its "buy, fix, rent" model, Circuit Ave addresses a staggering housing shortage with a novel solution that provides stable, long-term housing for families in need, creates high-quality jobs and contributes to economic growth.
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.
