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Turner Impact Capital is diving into Denver. The impact-focused private equity real estate firm has acquired two multifamily residential properties in Aurora, Colorado, part of the Denver metropolitan area, via its third Multifamily Impact fund.
Turner launched the fund in October with a $750 million fundraising target. Its mission is to address the affordability crisis for workforce housing in urban areas in the US “amid continuing hardship for working families”, the firm’s Bobby Turner said. Its investment strategy involves acquiring and preserving residential properties for low- and moderate-income families that earn too much to qualify for subsidized housing but struggle to find affordable housing options (see, “Building institutional-grade strategies to create and preserve affordable housing (podcast)”).
Mismatch
Turner aims to address “large supply/demand mismatches of core community infrastructure,” such as workforce housing, public schools, and community-serving healthcare facilities, “and a lack of institutional capital.” In Denver, the median household income increased by around 40% between 2013 and 2022, while house prices surged 120%.
Turner’s earlier multifamily funds have plowed $650 million into preserving working class housing in Chicago, Dallas, Las Vegas and other markets.
Housing preservation
Rent restrictions on some 200,000 units of so-called affordable housing are set to expire next year alone, growing to 1 million units annually by 2032. Much of the public discussion around addressing the gap for affordable housing has focused on the creation of new affordable housing.
Last month’s Agents of Impact Call identified strategies for preservation of affordable housing, both rental and owner-occupied. Roc USA, for example, helps mobile home owners form cooperatives to buy the land beneath their homes.
