New Partnership Investing $20M in Affordable Housing in California
- Mar 31, 2015
New York—The Community Development Trust (CDT), a national private real estate investment trust, has announced a partnership with TIAA-CREF, a national financial services organization, to invest in affordable housing in California.
The $20 million investment covers eight first mortgages on Low Income Housing Tax Credit properties (LIHTC). The properties are located throughout six cities, including two properties totaling 82 units in Los Angeles, one property with 50 units in San Diego, one property with 74 units in Fresno, units in Manteca, San Juan Capistrano and others.
“We are excited to work with TIAA-CREF to ensure the continued preservation of these affordable housing properties located in communities across California,” said Joseph F. Reilly, president and CEO of CDT. “Long-term fixed-rate financing contributes to the stability of the communities we invest in, and this partnership between two mission-driven organizations ensures that low-income individuals, families, and seniors continue to have safe, secure and affordable homes.”
Five of the eight properties are dedicated solely to family tenancy, each offering a unique combination of community and individual unit amenities. Several properties include playgrounds, outdoor residential recreation areas, community rooms and other amenities for family properties. The remaining three properties provide affordable senior housing, with amenities such as community kitchens, libraries and outdoor common space.
“TIAA-CREF is proud to bring these properties into our Social Impact Investment portfolio and use our investment capital to make affordable housing available to low-income California families,” said Rekha Unnithan, director of Impact Investing within TIAA’s Responsible Investment team. “We are excited to work with CDT on this program and look forward to developing new opportunities that reflect our shared values in preserving and creating affordable housing.”
As part of TIAA’s General Account, the Social Impact Investment Portfolio oversees capital to quality investment opportunities that create quantifiable social effects and provides competitive earnings. By the end of 2014, this portfolio made $792 million in total investments and commitments across three investment themes benfitting low- to moderate-income communities worldwide: affordable housing, financial inclusion and community and economic development.
“Partnering with an Impact Investing leader such as TIAA-CREF furthers CDT’s commitment to investing in affordable housing and in working with partners that share our mission of making a positive, long-term difference in residents’ lives and neighborhoods,” continued Reilly. As a CDFI and private REIT with a social impact objective, CDT runs as a double bottom line organization by making use of creative financial solutions to offer debt and equity capital to underserved real estate markets, while pursuing quality yields for shareholders.