Turner Impact Capital, based in Santa Monica, Calif., is stepping up to the affordable workforce housing plate with a billion dollar bat. The firm recently announced the launch of its second multifamily housing fund, the Turner Multifamily Impact Fund II, which is designed to preserve affordable workforce housing around the country. Turner’s first fund, the Turner Multifamily Impact Fund I, was launched in 2015 and closed after acquiring 22 housing communities with a total of 7,840 units.
Turner is now looking to invest $1 billion to acquire up to 10,000 units, which would increase its total housing investments to up to $2 billion and 20,000 units nationwide. The firm is already off to a good start by acquiring 1,325 units near Austin, Texas; Chicago; and Washington, D.C.
As opposed to looking for typical value-add fixer-uppers, Turner’s model is based on trying to lower expenses through improvements to day-to-day operations while implementing resident-enrichment services to reduce vacancy and turnover. These services include after-school homework help, employment assistance, community health services, and neighborhood watch programs. The goal is to help working families by providing them with what they really need.
“We are pleased to be enlarging and extending our commitment to preserve workforce housing that serves the families who make up the backbone of our communities. These residents include teachers, police officers, and health-care professionals who earn too much to qualify for subsidized apartments but can’t afford newer luxury or upgraded housing,” said Turner Impact Capital CEO Bobby Turner. “As the nation’s housing crisis continues to deepen, especially in high-cost urban areas, our funds provide accessible and service-rich housing to low- to moderate-income households while delivering strong investment returns for our investors.”
Turner's three newly acquired properties include:
- Sunset Lake Apartments, Chicago MSA: A 614-unit community in 13 residential buildings, with a large pond, a swimming pool, and a walking trail.
- Agave Falls Apartments, Austin MSA: A 325-unit community in 21 residential buildings, with two swimming pools, a fitness center, a playground, and a dog park.
- SouthRidge Apartments, Washington, D.C., MSA: Formerly called Homestead at Laurel, a 386-unit community in 40 residential buildings, with a clubhouse, a pool, a gym, and a children’s play structure.
Turner is banking on thoughtful stabilization to improve the bottom line. “Our unique resident enrichment services are meaningfully improving quality of life and delivering strong business results,” said Gee Kim, president of multifamily initiatives for Turner Impact Capital. “Tenant satisfaction rates and lease durations have risen significantly, while vacancy, turnover, and related costs have fallen. We are excited to continue expanding this successful model.”