L
ogos Faith Development, a real estate firm specializing in affordable housing projects on underutilized church land, has secured an $11 million investment. The funding brings the Westchester-based company's balance sheet to $180 million and will be used primarily for ready-to-issue permit capital and operational expenses.
The financing will enable Logos to continue its mission of developing affordable housing in Los Angeles and San Diego. Founded by pastor Martin Porter in 2017, the firm focuses on faith-oriented projects that cater to each church's unique needs and goals. "We treat each church as an individual organization with a rich heritage," Porter said. "Our projects are never 'cookie cutter'."
Logos' development pipeline currently stands at $525 million, encompassing over 2,000 units. The firm's high-performing model relies on cost-saving factors, including partnering with churches to avoid land acquisition costs and utilizing private funding to bypass regulations associated with low-income housing tax credits.
By leveraging these strategies, Logos is able to keep its cost per unit at under $325,000, significantly lower than the average cost of building affordable housing in Los Angeles. The firm's value engineers work closely with general contractors from the outset to ensure a smoother development process and better results.
Logos typically builds on lots of 10,000 square feet or larger and targets an internal rate of return of 20% for churches and investors, with a 7% yield on cost. While the majority of units are one- or two-bedrooms, the firm is exploring options for three-bedroom apartments. The developments are subsidized through Section 8 vouchers and rent follows county guidelines for those making 80% to 110% of the average median income.
Porter sees southern and central states as opportunistic areas for financing, citing the presence of faith-based foundations and organizations that can provide funding. He expects the Logos team to double in size over the next two years as the firm expands its reach.
