A 326-unit apartment community in White Oak is being preserved as mixed-income affordable housing through a $79.4 million acquisition announced by Donaldson Impact Investments, in partnership with New York Life Investment Management and nonprofit developer Housing Initiative Partnership (HIP).
The acquisition of Yorkshire Apartments will transition the garden-style community from market-rate housing to a mixed-income model designed to provide long-term housing stability for residents facing rising housing costs in Montgomery County.
Under the new structure, half of the apartment homes will be designated as affordable for households earning up to 60% of the area median income, while the remaining 50% will continue to operate as market-rate units.
New York Life Investment Management served as the majority investor in the transaction, which was financed through a combination of market-rate equity, financing from JPMorgan, and Montgomery County’s By-Right Payment in Lieu of Taxes (PILOT) program. The program provides long-term tax abatements to support affordable housing projects.
“This acquisition demonstrates how progressive public-private partnerships can create meaningful, lasting impact for residents and the community at large while safeguarding quality housing in high-demand markets,” said Kevin H. Smith, Managing Partner of Donaldson Impact Investments. “At a time when rising development costs, constrained investment activity and recent rent control measures in Montgomery County are limiting housing supply, preserving communities like Yorkshire is paramount.”
The partners say the project will help expand access to larger apartment homes at more attainable rental rates. Yorkshire Apartments features an average apartment size of approximately 1,005 square feet, larger than many traditional affordable housing options in the region.
HIP will serve as the nonprofit partner and resident services provider, offering programs designed to support residents beyond housing. Planned services include bilingual onsite staff, financial wellness programs, educational resources, food assistance programs, and other community support services.
“We are facing a housing affordability crisis in the DC region,” said Carlton Einsel, co-founder of Donaldson Impact Investments. “This acquisition adds critically needed committed affordability to the Montgomery County multifamily housing stock, along with dedicated onsite resident services for all households at Yorkshire Apartments.”
Stephanie Prange Proestel, Executive Director of HIP, said the organization is focused on pairing affordable housing with services that help residents build long-term stability. “By pairing safe, high-quality housing with supportive onsite services and community resources, we can help build stronger, more resilient communities,” Proestel said. “Having a stable home is just the first step to leading a productive and healthy life.”
The community began welcoming residents under the new affordable housing model on June 1. According to the partners, an onsite Resident Services Coordinator and property management team will help connect residents with resources aimed at improving economic mobility and quality of life.
The Yorkshire Apartments acquisition marks the second investment by Donaldson Impact Investments and reflects the group’s stated goal of preserving workforce housing and expanding affordable housing opportunities throughout the region.
