ImpactAlpha, December 9 — As many as 40 million Americans could lose their apartments in coming months due to the impact of the COVID-19 pandemic. Turner Impact, a L.A.-based real estate impact investment firm, is looking to acquire 10,000 affordable ‘workforce’ housing units for teachers, police officers and healthcare workers who don’t qualify for subsidized housing but may be struggling to pay rent.
With Turner typically providing about one-quarter of the capital, Turner Multifamily Impact Fund II could leverage up to $1.25 billion. The fund already has acquired seven properties, with an eighth under contract, representing more than 3,000 units, in cities including Austin, Dallas, Las Vegas, Chicago, Seattle and Washington D.C.
Turner has raised a total of $1.4 billion across funds targeting health care and charter schools as well as workforce housing. The firm says the social services it provides tenants, including health services, childcare and food banks, reduces vacancy rates and delinquent rents (see, “What we know about Turner Impact Capital’s school, housing and health funds”). Turner’s first housing fund has acquired 7,840 affordable housing units that are occupied by more than 14,000 residents.
Founder Bobby Turner has attracted celebrity backers to earlier funds, including tennis great Andre Agassi and actress Eva Longoria. The newest fund counts NBA superstar Chris Paul and hedge fund billionaire Bill Ackman of Pershing Square Capital Management among its limited partners.
In a statement, Ackman said Turner’s team “has demonstrated an ability to create a sustainable and scalable for-profit solution to address the current affordable housing crisis.”