The New York-based real estate impact fund is eyeing a $250 million final close to finance over $1 billion of mixed-income housing development in high-growth US cities. “By focusing on providing mixed-income housing in high-cost areas, the fund both addresses the breadth of the affordability crisis and capitalizes on an investment opportunity not otherwise available in the private markets,” said MSquared’s Alicia Glen.
The former New York City deputy mayor launched the private equity firm five years ago to invest “in impactful affordable housing projects while supporting a much more inclusive and diverse real estate sector,” she told ImpactAlpha three years ago (see, “Trinity Church Wall Street commits $20 million to MSquared’s New York affordable housing fund”). MSquared’s investments target overlooked developers, including women and people of color.
Institutional impact
Investors in MSquared’s second Equitable Housing Solutions Fund include Trinity Church, Capricorn Investment Group, Citi Community Capital and Deutsche Bank.
The fund has financed the development of 500 units of mixed-income housing, half of which will be affordable rentals. The projects, located in Dallas and Everett, Washington, are being developed by women-led development firms.
MSquared’s first Equitable Housing Solutions Fund, which raised $200 million, has invested in 14 mixed-income development projects with a combined value of more than $1.5 billion. MSquared focuses on projects built within commercial spaces, such as daycare centers and small businesses, and incorporate sustainable housing practices.
