FOR IMMEDIATE RELEASE
Nashville, Tenn. — Pathway Lending, a non-profit Community Development Financial Institution headquartered in Nashville, created the Pathway Housing Fund to preserve Naturally Occurring Affordable Housing (NOAH) developments across Tennessee. Today, the Fund announced the purchase of two multifamily properties in the Donelson-Hermitage area, marking the first acquisitions since its November launch.
The purchase will protect the long-term affordability of 101 apartments amid rising rents and a decreasing supply of attainable housing. These acquisitions are preserving a critical part of the region’s housing supply that is often lost when properties change ownership or are repositioned. The properties are in one of Nashville’s leading ZIP codes for closings or development, according to the recent reporting from Greater Nashville REALTORS®.
East Lake Apartments with 61 units and Dawn Villa Apartments with 40 units are established communities offering below-market-rate rents to working families and individuals in the Donelson-Hermitage area. Together the properties have 33 studio, 59 one-bedroom, and nine two-bedroom apartments. The Pathway Housing Fund acquired the properties for approximately $9 million, using a combination of fund capital and financing from Pinnacle Financial Partners.
In addition to preserving affordability, the Pathway Housing Fund will invest in thoughtful property improvements designed to enhance the resident experience. Originally built in the 1960s, both communities will benefit from strategic upgrades focused on security, comfort, and long-term durability, ensuring these properties remain stable, well-maintained places that residents are proud to call home for years to come.
“At a time when affordability is increasingly out of reach for many Nashvillians, preserving existing affordable housing is one of the most effective ways to keep communities stable and ensure long-term access to quality affordable housing,” said Matt Wiltshire, president of the Pathway Housing Fund. “These first acquisitions reflect our long-term commitment to keeping thousands of homes affordable across Tennessee.”
“Through these acquisitions, the Pathway Housing Fund is helping protect long-term affordability and support housing stability for the residents of East Lake and Dawn Villa,” said Hank Helton, Pathway Lending executive vice president and chief stakeholder officer. “Pathway Housing will make investments to improve the residents’ living experience and sustain the long-term viability of the properties, maintain rents below market rate, and manage the properties with no intention to sell them in the future.”
These acquisitions were made possible through Pathway Lending’s partnership with Pinnacle Financial Partners, Regions Bank, First Farmers and Merchants, and Old National Bank. This is the first of several acquisitions the Fund expects to make in 2026. Pathway welcomes additional partners and community banks to join in future property acquisitions.
The Fund will continue to work with property owners who want to receive fair value for their properties while ensuring they remain affordable in the future.
Media Contacts:
Erin Raffield: erin.raffield@pathwaylending.org
Honor Garrett: honor@mcneelybrockmanpr.com
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About Pathway Housing Fund
Pathway Housing Fund (PHF), established by Community Development Financial Institution, Pathway Lending, leverages low-cost capital to preserve Naturally Occurring Affordable Housing (NOAH) properties across Tennessee that are at risk of becoming unaffordable due to gentrification. Beginning with an initial investment of $30 million, PHF acquires, renovates and develops rental housing and ensures long-term affordability. Interested owners can contact Matt Wiltshire at matt.wiltshire@pathwaylending.org or visit PathwayHousing.com to learn more.
About Pathway Lending
Pathway Lending is a Tennessee-based Community Development Financial Institution certified by the U.S. Department of the Treasury that propels economic growth in under-resourced communities. Since its establishment in 1999, Pathway has generated more than $1 billion in economic impact as a leading community-focused lender in the Southeast. For more than 25 years and through its lending and advisory programs, Pathway has financed over 1,500 businesses, delivering more than $587 million in direct lending through its small business, affordable housing, and climate-related loan funds, plus investing $115 million in new markets tax credits. Pathway is committed to creating economic opportunity and lasting impact across Tennessee, serving businesses and communities in Memphis, Nashville, Chattanooga, Knoxville and surrounding cities.
In 2024, Pathway funded $61.3 million in loan capital and provided 15,000 hours of education and coaching to 2,800 entrepreneurs. This funding supported 162 affordable multifamily housing units, 2,700 small business jobs and $386,000 in annual energy cost savings. To learn more about the entrepreneurs and communities that Pathway Lending serves, visit PathwayLending.org.