Affordable Housing Initiative in McKinney, Texas
Introduction to the Project
A Dallas developer is converting half of a newly acquired McKinney apartment complex — currently at market rate — into affordable housing. On Tuesday, Kalterra Capital Partners, a Dallas multifamily developer, and Turner Impact Capital, a Los Angeles private equity real estate firm, announced the acquisition of Kinstead, a 376-unit apartment complex in McKinney, as part of a public-private partnership.
The complex was built five years ago as a market-rate community and was purchased from developer Zom Living upon completion by a fund sponsored by CBRE Global Investors.
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191 units will be earmarked for renters earning 30% to 80% of Dallas’ area median income, currently $93,850 for a family of four according to the Department of Housing and Urban Development.
“The fact that it’s a newer asset is a big reason why we’re so excited to do the partnership with the McKinney Housing Authority,” said Nic Balsamo, partner at Kalterra Capital Partners.
He said that was the aspect of the acquisition the McKinney Housing Authority was most excited about.
Property Details
Kinstead comprises six three-story buildings on a 14-acre site and includes one-, two- and three-bedroom apartments with smart home systems and modern appliances.
Amenities include two swimming pools, a clubhouse and kitchen, gaming room, yoga studio, work spaces, a dog park, pet spa and electric-vehicle charging stations.
Partnership and Financing
The McKinney Housing Authority, the public partner in the arrangement, is leasing the property to the private partners in a 99-year lease.
“It’s a Section 392 partnership with the McKinney Housing Authority that provides a certain level of annual tax abatement,” Balsamo said.
He said the abatements help make the numbers work for converting the property from a market-rate to a mixed-income community.
Future Plans
Balsamo noted this is Kalterra’s first acquisition, with plans for more in the future. While the developer typically employs the merchant-builder model, which includes selling a property after construction is completed and it has been stabilized with a certain percentage of tenants, it plans to hold Kinstead long-term.
“In 2025 and over the past few years, it’s been hard to make real estate transactions work. The process of finding alignment with our equity partner — who we hope to do future projects with — and working with the McKinney Housing Authority was overwhelmingly positive,” Balsamo said.
While demand in the multifamily market hasn’t quite bounced back after a post-pandemic surge in supply was met with weak demand, the developer still has its eye on opportunities for more multifamily developments across the state.
Impact on the Community
“We’re realizing the vision we set out to accomplish: long-term ownership, expanding our tenant base, providing affordability and a great experience, and growing our platform to do more projects like this — more acquisitions,” Balsamo said.
A statement noted Turner Impact Capital has invested in more than 2,000 apartment units around Dallas.
“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,” Turner Impact Capital CEO Bobby Turner said in the statement.
Conclusion
The conversion of the Kinstead apartment complex into affordable housing is a significant step towards addressing the housing needs of low-income families in McKinney, Texas. The partnership between Kalterra Capital Partners and Turner Impact Capital demonstrates the potential for public-private partnerships to create affordable housing opportunities. As the demand for affordable housing continues to grow, it is essential to explore innovative solutions like this project to ensure that everyone has access to safe and affordable housing.
Frequently Asked Questions
Q: What is the Kinstead apartment complex?
A: The Kinstead apartment complex is a 376-unit apartment complex located in McKinney, Texas. It was built five years ago as a market-rate community and has been acquired by Kalterra Capital Partners and Turner Impact Capital as part of a public-private partnership.
Q: How many units will be converted into affordable housing?
A: 191 units will be earmarked for renters earning 30% to 80% of Dallas’ area median income.
Q: What amenities are available at the Kinstead apartment complex?
A: The complex includes one-, two- and three-bedroom apartments with smart home systems and modern appliances, as well as amenities such as two swimming pools, a clubhouse and kitchen, gaming room, yoga studio, work spaces, a dog park, pet spa and electric-vehicle charging stations.
Q: What is the role of the McKinney Housing Authority in the project?
A: The McKinney Housing Authority is the public partner in the arrangement and is leasing the property to the private partners in a 99-year lease. The authority will also provide a certain level of annual tax abatement to help make the numbers work for converting the property from a market-rate to a mixed-income community.
Q: What are the future plans for Kalterra Capital Partners?
A: Kalterra Capital Partners plans to hold the Kinstead apartment complex long-term and is exploring opportunities for more multifamily developments across the state.
