Clear Blue CEO on How Private Equity’s Closing Gaps in Affordable Housing
Nick Ogden discusses the firm’s dual approaches: acquisition-rehab and ground-up development.
Private equity is taking on a larger role in the affordable housing space, bringing more sources of capital and new development strategies to address the ever-increasing shortage across the country.
One firm combining private equity with a plethora of other funds to move the needle is The Clear Blue Co., a Nashville-based company that focuses on preserving and developing affordable and workforce housing across the Southeast and Midwest.
With more than $850 million in assets under management and a portfolio spanning 16 markets, The Clear Blue Co. is both into ground-up development and housing preservation. How does this dual approach work? We asked Founder & CEO Nick Ogden to share his views on what it takes to make a difference in the affordable housing space.
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What role does private equity play in the affordable housing space?
Ogden: The affordable housing crisis is one of the defining challenges of our time and private equity has a critical role to play. With capital, speed and operational expertise, we can help close the gap—but only if we do it with accountability and care. We believe financial returns and social outcomes aren’t at odds. They’re deeply aligned.
When you build places where people can afford to live with dignity, you create long-term stability, reduce turnover and generate resilient cash flow. That’s not just smart investing, it’s responsible stewardship. With more than $850 million in assets across 16 markets, we’ve proven that a resident-first model can drive consistent, sustainable returns. But this work demands more than capital. It requires ownership: of livability, security and community.
How do you weigh acquisition-rehab versus ground-up development in your strategy?
Ogden: We don’t take a one-size-fits-all approach to the housing crisis because the needs—and the solutions—vary by market. In some places, affordable units are disappearing faster than they can be replaced. In others, the imbalance between supply and demand is overwhelming. That’s why we pursue both preservation and ground-up development. Both tools are essential. You must preserve existing supply and create new supply to make a meaningful impact.
We’re structured to do both well, guided by local data, community input and long-term value. In North Nashville, for example, there were no affordable senior units to preserve, so we’re building from the ground up. The result is Northview, a 254-unit community designed for older adults aging in place.
In contrast, we’ve stepped into acquisition-rehab projects where existing affordable housing was at risk of being converted to market rate. In those cases, we stabilized the assets, improved the resident satisfaction and extended affordability protections. This dual approach isn’t just strategic—it’s necessary to truly move the needle.
What did you learn from structuring the Northview senior housing project in Nashville?
Ogden: Northview taught us that long-term impact starts with alignment: on mission, values and vision. The project didn’t begin with a site, it began with a relationship. Born Again Church had underutilized land and a desire to serve its aging congregation. We partnered to bring that vision to life, creating 254 high-quality, affordable homes that support seniors aging in place.
To get it done, we structured a layered capital stack that included Tennessee Housing Trust Funds, the Metropolitan Development and Housing Agency, The Barnes Fund, Amazon, Regions, Fannie Mae and critical city leadership. Everyone at the table shared a common purpose, which made the process both faster and more durable. The biggest lesson? Alignment in predevelopment leads to stronger, longer-lasting results. When everyone is rowing in the same direction from the start, the project is built to last.
So how do you typically build a capital stack that works for affordable housing?
Ogden: We start with the outcome and work backward. Who are we serving? What does long-term affordability look like? What services will be needed over time? Those answers shape the deal. From there, we build a capital stack that blends conventional debt and equity with public tools like LIHTC, tax-exempt bonds, ARPA and HOME funds and, increasingly, we incorporate impact capital and philanthropic support. Sometimes that means bringing in mission-aligned partners to fund services or close gaps traditional capital won’t cover.
These deals are complex, but when done right, they’re highly resilient. Long waitlists, high occupancy and limited downside risk offer a level of stability the broader market doesn’t always price in. We measure return on investment in dollars and how those dollars change lives. That’s the shift this industry needs.
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What do you think resonates most with capital partners? What makes them say “yes”?
Ogden: What resonates most with capital partners is resilience. Affordable housing consistently delivers high occupancy, long waitlists and reliable collections, even during economic downturns. They also see the power of aligned incentives: When residents are stable, turnover drops and returns improve. Impact and performance go hand in hand.
Partners value how we align with public policy, unlocking tools many developers overlook. That lowers risk and adds value. Still, there are lingering misconceptions. Some assume impact comes at the cost of profitability. It doesn’t—if structured correctly. Layered financing may seem messy, but it spreads risk and brings in deeply committed stakeholders.
What’s still misunderstood about affordable housing investment?
There’s often a misunderstanding about who lives in affordable housing. These aren’t fringe cases. We house the people who serve our cities: teachers, nurses, police officers, grocery clerks, transit workers, seniors. They’re people who make communities work but are priced out of living in them. Finally, some investors still expect a short-term flip. But affordable housing is a long-term play, and that’s a big part of its value.
What market trends are you keeping an eye on across the Southeast and Midwest?
Ogden: We’re focused on markets where smart capital can move the needle—especially secondary and tertiary cities experiencing job growth but lacking the housing infrastructure to keep up.
Three trends stand out. First, population shifts to lower-cost metros continue without a corresponding increase in affordable housing. Second, we’re seeing policy momentum. Cities are streamlining entitlements and deploying federal funds more strategically. Third, investor appetite is shifting. More capital is looking for long-term, impact-aligned opportunities in resilient asset classes like affordable housing.
We build where the fundamentals are strong, where local partnerships matter and where the projects fit the fabric of the community.
What are your priorities for the next few years and how is the current economic uncertainty shaping your approach?
Ogden: We’re scaling both preservation and new development, while also building in-house capabilities in construction and general contracting. That gives us greater control over cost, quality and speed to market.
In the face of economic and political uncertainty, we’re doubling down on creativity—blending public-private partnerships, exploring new financing models and staying nimble as the landscape shifts. We’re not chasing trends. We’re here to build what lasts: stable communities, long-term affordability and a legacy of impact that outlives market cycles.
