Pathway 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 by the Fund 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 Greater Nashville Association of 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 used $9 million from the $30 million fund to purchase the properties.

“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.”

“Nashville is an ever-expanding city, and East Lake and Dawn Villa are positioned in an area that has seen significant growth in recent years. Through these acquisitions, the Pathway Housing Fund is helping protect long-term affordability and support housing stability for its residents,” said Pathway Lending executive vice president and chief stakeholder officer, Hank Helton. “Pathway Housing will manage the properties long term with no intention to sell them in the future.  We plan to make investments to improve the living experience for residents and sustain the long-term viability of the properties while maintaining rents at a level that is affordable.”

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 like these two.

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.

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 [email protected] or visit PathwayHousing.com to learn more.