Turner Impact Capital has closed a second affordable workforce housing fund that will unlock $1.25 billion for the acquisition of needed affordable housing nationwide.
Turner Multifamily Impact Fund II will enable the Santa Monica, California-based real estate investment firm to acquire and manage up to 10,000 additional workforce housing units and keep them affordable to households earning less than the area median income. In addition to preserving the affordable housing stock, Turner Impact Capital prioritizes its social impact mission and offers a range of services tailor to each community, such as afterschool homework help, employment assistance, health services, and neighborhood watch programs.
This fund builds on the impact of the Turner Multifamily Impact Fund I, which invested nearly $700 million to acquire 7,840 workforce units housing more than 14,000 residents. In addition, it comes at a time when the affordability gap is worsening, with the COVID-19 pandemic impacting jobs and an estimated 30 million to 40 million people at risk of losing housing in the months ahead as eviction moratoriums expire, according to Turner Impact Capital.
“While at the end of the day we know this health crisis will pass, the pandemic and resulting financial crisis have highlighted how fragile our most vulnerable populations are to unforeseen emergencies and underscored the critical and growing demand for affordable workforce housing in the U.S.,” said CEO Bobby Turner. “While many investors have struggled to raise capital for social impact funds, we have seen remarkable interest due to our singular focus on impact strategies, the demonstrated success of our previous housing funds, and our 25-year track record generating superior risk-adjusted returns across complementary investment platforms that also include education and community-serving health care facilities.”
The closing of the second fund with more than $350 million of committed capital will pave the way for the $1.25 billion investment potential to provide housing for residents who may earn too much to afford subsidized housing but can’t afford luxury rental units or homeownership. So far, Turner Impact Capital has purchased seven multifamily communities and has an eighth under contract, totaling nearly 3,100 units, including Ventana Apartments in Dallas, Bridgeport Apartments in Irving, Texas, and Portola del Sol in Las Vegas.
One of the investors in Turner Impact Capital’s housing funds is longtime advocate and NBA star Chris Paul. “It’s hard to overstate the importance of providing quality housing that local residents can afford,” he said. “Bobby and I both believe in backing up talk with action. We’re spending our time and resources to scale up a proven housing solution that doesn’t just keep homes affordable, but supports families by providing housing stability and services that truly make a positive difference in their lives.”
Since its founding in 2014, Turner Impact Capital has raised approximately $1.4 billion, enabling the firm to drive more than $5 billion in investment to tackle interrelated challenges in housing, public education, and community-based health care.
