Dealflow | October 6, 2020

Jonathan Rose closes $525 million impact fund for affordable housing

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, October 6 – New York-based real estate investor Jonathan Rose Companies spotted the opportunity in buying, preserving and greening affordable housing earlier than other commercial real estate investors. Jonathan Rose acquires affordable housing properties and upgrades them with energy-saving lights and appliances, other green features and social and educational services for residents. The growth of impact investing has helped the 31-year-old company grow its assets and its portfolio.

“There is an increased interest in investing in affordable housing, as investors have become familiar with the steadiness of the cash flows, and the excellent historical returns,” founder Jonathan Rose told ImpactAlpha. “They also see it as a way to directly address social inequities.”

Its fifth fund is backed by the Ford Foundation and The Sorenson Impact Foundation, as well as unnamed pension funds, foundations, universities, family offices, high net-worth investors and healthcare systems, which are responding to a growing number of studies that “correlate health and aspects of housing,” said Rose.