Turner Impact & Kalterra Acquire Dallas Apartments for Affordable Housing Conversion
In a significant step toward alleviating North Texas’s housing affordability crisis, Turner Impact Capital, one of the nation’s largest real estate investment firms dedicated exclusively to social impact, and Kalterra Capital Partners, a Dallas-based private real estate investment and development company, have jointly acquired Kinstead, a 376-unit garden-style apartment community located in McKinney, Texas. The joint venture, formed between Turner’s Multifamily Impact Fund III and Kalterra, plans to convert more than half of the property’s units—191 in total—into income-restricted housing affordable to households earning between 30% and 80% of the Area Median Income (AMI).
The acquisition marks a milestone for Turner Impact Capital as it represents the first time the firm will convert market-rate rental units into designated affordable housing, further expanding its toolkit for addressing the growing affordability gap facing working-class families in metropolitan areas. Turner and Kalterra’s strategic partnership is designed to preserve high-quality housing while making it accessible to residents who typically fall outside the eligibility range for traditional subsidized housing.
Addressing Affordability with Private Sector Ingenuity
Located roughly 30 miles northeast of downtown Dallas, the Kinstead community sits in one of the fastest-growing and highest-demand regions in the country. Although the property, built just five years ago, offers modern amenities and proximity to major employment centers across Collin and Dallas counties, its rent levels have historically been unaffordable for many local working families.
With the region’s population growth and housing demand far outpacing new supply—especially at attainable price points—the Kinstead project embodies Turner Impact and Kalterra’s shared vision of applying market-driven, scalable solutions to social challenges.
Bobby Turner, CEO of Turner Impact Capital, emphasized the significance of the acquisition:
“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. 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.”
Nic Balsamo, Partner at Kalterra Capital Partners, echoed the sentiment, noting the importance of collaboration:
“We see an opportunity to meet housing needs through thoughtful partnership-driven acquisitions. 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.”
A Joint Venture Built on Complementary Strengths
The Kinstead transaction brings together the national impact investment expertise of Turner Impact Capital with the deep local knowledge and municipal relationships of Kalterra. Turner’s Multifamily Impact Fund III (TMIF III) now owns over 1,850 units across six major U.S. metropolitan markets, leveraging its disciplined investment strategy to unlock more than $2 billion in potential capital to acquire or develop workforce housing.
Kalterra, meanwhile, is actively expanding its platform to include strategic acquisitions that preserve affordability, working closely with public sector entities to tailor housing solutions that serve both residents and municipalities. The firm has a long-standing presence in the Dallas-Fort Worth market and maintains an investment philosophy rooted in aligning market opportunities with community benefit.
Kinstead Property Details
Kinstead is a garden-style residential community situated on a 14-acre site in McKinney, a vibrant city that has seen significant population and economic growth in recent years. The community consists of six three-story buildings housing one-, two-, and three-bedroom apartments. Each unit features smart home systems, modern appliances, and contemporary finishes, making them highly desirable in the local rental market.
Amenities include:
- Two resort-style swimming pools
- A clubhouse with a catering kitchen
- A yoga studio and gaming room
- Shared and private workspaces
- A pet spa and dog park
- On-site electric vehicle charging stations
These features contribute to Kinstead’s appeal among young professionals, families, and essential workers—groups who often struggle to find affordable housing without compromising on quality or location.
Affordability Structure and Long-Term Commitment
Under a 99-year master lease agreement with the Housing Authority of the City of McKinney, the Turner-Kalterra joint venture has committed to converting and maintaining a majority of the units as affordable. Specifically:
- 29 units (7.7%) will be reserved for households earning 30% of AMI
- 162 units (43.1%) will be reserved for households earning up to 80% of AMI
- 185 units (49.2%) will remain at market-rate rents
This long-term affordability structure ensures housing stability for a significant number of residents in McKinney while offering a model that can be adapted to other high-growth markets facing similar affordability challenges.
TI Communities to Provide Property Management and Resident Services
Management of Kinstead will be handled by TI Communities, an affiliate of Turner Impact Capital that oversees property operations across the firm’s national multifamily housing portfolio. TI Communities brings a mission-driven approach to property management, emphasizing community enrichment and tenant engagement.
Soon after acquisition, TI Communities will begin implementing on-site enrichment programs, designed to enhance resident well-being and opportunity. These programs may include:
- Youth education initiatives
- Adult financial literacy workshops
- Health and wellness services
- Community-building events
By integrating these services, Turner Impact and Kalterra aim to create more than just affordable housing—they seek to cultivate resilient, thriving communities.
Broader Impact and Future Plans
The Kinstead acquisition is part of a broader effort by Turner Impact Capital to deliver large-scale impact through real estate investment. Since launching its first housing fund in 2016, the firm has preserved and enriched over 15,000 units of affordable workforce housing, positively affecting more than 61,000 residents. Turner’s portfolio predominantly serves community-serving professionals—teachers, nurses, law enforcement officers, and others who do not qualify for subsidized housing but are often priced out of the neighborhoods where they work.
With over $2 billion raised in equity commitments and a clear mission to exceed $6 billion in total investment capacity, Turner Impact is redefining the role of private capital in addressing social challenges through sustainable, high-impact investing.
Gary Rodney, Managing Director of Multifamily Housing Initiatives at Turner Impact, concluded:
“We are thrilled to complete this joint venture, expanding our presence in greater Dallas with the acquisition of this modern housing community in a dynamic market. Kinstead demonstrates our commitment to developing innovative, lasting solutions to increase access to workforce housing for families and individuals. We look forward to pursuing additional opportunities with Kalterra and other best-in-class partners.”
A Scalable Model for Texas and Beyond
As both Turner Impact Capital and Kalterra Capital Partners look to the future, the Kinstead acquisition is seen as a blueprint for similar efforts throughout Texas and across the United States. By working with local governments and housing authorities, and leveraging the efficiencies of the private sector, the joint venture is proving that high-quality, affordable housing doesn’t require compromise—it requires collaboration, intention, and innovation.
