Jonathan Rose Companies, LLC, a leading green real estate investment, development and project management firm, announced that it has closed on a $233-million impact fund,. This represents the firm’s fourth institutional fund focused on acquiring and preserving affordable multifamily housing, implementing practical green strategies to reduce environmental impacts and operating costs and to fund social, educational and other services for residents.
The Fund closed with aggregate capital commitments of $232,905,000, reaching the top end of its $150-250 million target. Institutional investors, investment advisors, and leading impact-investment managers, contributed to the high success of the Fund, as did family offices and high net-worth investors. The Fund was particularly successful in attracting impact investors seeking strong risk-adjusted returns generated by a strategy that inherently also produces significant environmental and social returns. Rose’s leadership in delivering results in all three components of impact investing helped drive investor interest.
A key component of the Fund’s strategy is to develop “Communities of Opportunity,” adding programs and facilities to properties that, where possible, include on-site community centers, computer filled classrooms, health and wellness rooms, social service rooms, exercise facilities and community gardens when possible to develop initiatives to connect residents with a range of health, educational and social services.
“Our fund’s goal is to provide our investors with favorable risk-adjusted returns, reducing energy use and climate impacts, while improving the lives of residents through building ‘Communities of Opportunity,’” said Jonathan F.P. Rose, president of Jonathan Rose Companies. “The goal is to provide safe, non- toxic, energy efficient, affordable housing as a stable base for families and seniors, targeting investments in high-demand locations with access to transit, jobs, schools and retail.”
Founded in 1989, Jonathan Rose Companies is one of the country’s leading investors and developers in sustainable, affordable, and mixed-income multi-family real estate. Jonathan Rose Companies is a fully integrated real estate company, with in-house acquisitions, development, construction management, and property management divisions overseeing projects totaling more than $2.3 billion of value. Jonathan Rose Companies’ affiliate, Rose Smart Growth Investment Advisors, LLC, is the investment advisor to the Fund, an SEC-Registered Investment Adviser with 12 years of fund management experience and institutional investment partners.
“Our strong track record and expertise in the affordable and mixed-income housing space, along with our economic and social returns, drove our fundraising success,” said Nathan D. Taft, Managing Director for Acquisitions at Jonathan Rose Companies. “Fund IV is already being invested in large portfolios and stand-alone transactions. We continue to see great opportunities nationally since we have a reputation in the market for closing complex deals.”
As one of the larger owners/operators of affordable housing in the country, with 15,000 units owned and managed in 2017, the award-winning work of Jonathan Rose Companies has been recognized by the Urban Land Institute, the U.S. Department of Housing and Urban Development and others.
The Fund has deployed over $64 million in equity investments closed as of July 2017. Among the Fund’s initial investments is a portfolio of over 3,300 apartment units across 18 assets from Forest City’s federally-assisted housing program located in eight states and the District of Columbia.
Across the three primary categories of subsidized, regulated and naturally occurring affordable housing, there are 7 million units of affordable multifamily housing in the U.S. representing an investment opportunity with increasing demand and restricted supply. With nearly 19 million U.S households currently paying more than 50 percent of their income for housing, Section 8 new construction phased out since 1983, and an average of 240,000 units of affordable housing supply permanently lost each year from 1999 to 2009, the need for investment in this market has never been clearer.
“Building upon a stable income stream, affordable housing leverages low cost of capital, grants and incentives, and regulatory and financial restructuring to drive strong current returns, and greater resiliency during economic downturns.” said Michael Arman, CFO of Jonathan Rose Companies.
About Jonathan Rose Companies LLC: Jonathan Rose Companies, Inc. is a seasoned real estate investment, development and project management firm whose mission is to repair the fabric of communities. The firm is nationally recognized for its ability to achieve visionary goals through practical, duplicable strategies. The firm acquires, develops, and acts as a consultant to assist not for profits with transit-oriented, green, mixed-income residential, innovative office, civic, education and health serving projects. Jonathan Rose Companies has developed or acquired more than $2.3 billion of real estate projects from offices in New York, Connecticut, Colorado, California and New Mexico. For more information, visit www.rosecompanies.com.