ImpactAlpha, Mar 2 — The California State Teachers’ Retirement System is backing L.A.-based SoLa Impact to invest in affordable housing in Black and brown communities in the U.S. The allocation is the $320 billion pension fund’s first real estate investment in its Sustainable Investment & Stewardship Strategies program.
SoLa Impact secured the equity allocation via Belay Investment Group, CalSTRS’ partner for investments in emerging real estate managers. SoLa Impact “is an organization that helps prove that ‘Doing well by doing good’ is a viable business model,’” said Belay’s Eliza Bailey.
The capital will go to SoLa Impact’s Black Impact Fund, which has raised $250 million from investors including PayPal, Skoll Foundation, Ally Bank and Pacific Premier Bank.
The fund will invest in building affordable housing in Black and brown communities, primarily in southern L.A. It will also invest in Oakland, Portland and Seattle. “The need for high-quality affordable and workforce housing in our target markets, primarily Los Angeles and Southern California, is significant,” SoLa’s Martin Muoto told ImpactAlpha.
The fund had an initial target of $500 million; it now has a hard cap of $300 million.