NEW YORK CITY—TIAA-CREF and Jonathan Rose Cos. said they have launched the Rose Affordable Housing Preservation Fund LLC. The $51.6 million fund—seeded by the two firms—has been established in order to acquire affordable and mixed-income multifamily housing in high demand markets across the US.
The fund, which will be managed by Jonathan Rose Cos., is intended to improve and “green” the assets through high impact/low cost energy retrofits as well as hands-on asset management that will reduce/control expenses and enhance tenant quality of life. It will focus on the Washington, DC-to-Boston corridor, Chicago, Denver, Los Angeles, San Francisco, Portland and Seattle markets. The goal is to combine solid, risk-adjusted return potential with an integrated social and environmental mission.
The Rose Affordable Housing Preservation Fund leverages the experience of Jonathan Rose Cos. as a national developer, investor and fund manager with deep experience in green, urban affordable and mixed-income housing. TIAA-CREF's investment builds on a successful prior investment with the company. Jonathan Rose Cos.' relationships include other major financial institutions as well as leading foundations and family offices.
"TIAA-CREF's Social Impact Portfolio has a focus on affordable housing, and this investment with Jonathan Rose Companies furthers the portfolio's objective to preserve and recapitalize affordable properties while fostering vibrant, healthy and diverse communities" says Rekha Unnithan, director within TIAA's Responsible Investment-Impact Investing team.
TIAA-CREF's social impact portfolio, which includes $700 million in commitments (as of 12/31/2013), reflects the fincial services organization's commitment to directing capital toward investment opportunities that create measurable social outcomes. The goal of the program is to invest capital into areas facing “capital gaps” which have not yet been adopted by mainstream investors.
"We are gratified that TIAA has chosen to re-invest with us" says Jonathan F.P. Rose, founder of Jonathan Rose Cos. "In today's heated apartment rental market, preservation of well-located affordable housing that is at risk of becoming market rate is critical to the health of our communities. At the same time, these investments can provide a great opportunity to generate attractive, low-risk returns.”
Adds Nathan D. Taft, director of acquisitions for Jonathan Rose Cos., “The fund is pinpointing projects and portfolios from $25 million to $50 million of total capitalization, with a special focus on mixed-income properties, low income housing tax credit and section 8 properties, and other properties with expiring affordability restrictions."
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
