ImpactAlpha, March 1 — The D.C. city government has a goal to add 36,000 new housing units by 2025. At least 12,000 of those units are expected to be affordable.
The Washington Housing Initiative Impact Pool, a fund created by real estate investment firm JBG SMITH and D.C. nonprofit Federal City Council, has raised $114.5 million to preserve or develop affordable ‘workforce’ housing in the D.C. area, particularly in communities that are vulnerable to the rapidly rising housing costs. Investors in the vehicle include MainStreet Bank and other undisclosed investors.
The fund has already invested $21.8 million to preserve 1,151 affordable housing. It provided a $6.7 million loan to housing nonprofit Washington Housing Conservancy to acquire and preserve as affordable Crystal House, a 825-unit apartment building in Arlington, Virginia.
“By combining Impact Pool capital with JBG SMITH’s real estate expertise and senior financing from Amazon’s new Housing Equity Fund, we were able to help the Washington Housing Conservancy execute the purchase of Crystal House in less than two months,” said JBG’s AJ Jackson.
Affordable ‘workforce’ housing
L.A.-based real estate impact investment firm Turner Impact in December last year raised $357 million 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.