MARKET OUTLOOK, REAL ESTATE TECHNOLOGY
Businesswire | April 27, 2023
Turner Impact Capital, one of the nation’s largest real estate investment firms dedicated to social impact, has expanded its efforts to address the country’s urgent housing affordability crisis with the acquisition of its first multifamily housing community in the Minneapolis metropolitan area.
Acquisition of the 207-unit Urbana Court Apartments in Brooklyn Park, Minn., closed today as one of the final investments of Turner Multifamily Impact Fund II. The purchase enables Turner Impact to bring its innovative market-driven housing solution for low- and moderate-income families to a fast-growing Minneapolis community with convenient access to job opportunities, healthcare, and schools.
The Turner Multifamily Impact Funds have acquired, preserved, and enriched approximately $2 billion of critically-needed housing for working individuals and families located in densely populated, ethnically diverse metropolitan areas throughout the U.S. These investments represent nearly 13,000 units of workforce housing nationwide, serving residents earning up to 80% of area median income while generating strong risk-adjusted financial returns for its institutional investors. Residents include community-serving professionals such as teachers, police officers, healthcare workers and others who often earn too much to qualify for subsidized housing but struggle to afford higher-cost housing located near job centers.
“As rents rise and recession concerns mount, we must ensure that working families have access to stable, affordable, and high-quality housing in major metropolitan areas,” Turner Impact CEO Bobby Turner said. “We continue to expand our housing initiatives, and Urbana Court presents an opportunity to bring our successful model to one of the most dynamic markets in the Midwest.”
Urbana Court is a newly built apartment complex with a large community center, 24-hour fitness center, pool, pickleball courts, playground, and underground heated parking. The units feature a wide range of appliances and full-size washers and dryers, and as part of Turner Impact’s sustainability initiatives, the Fund has identified ways to reduce energy and water use.
Minneapolis has the largest metropolitan economy in the region after Chicago, where Turner Impact also has significant housing investments. Brooklyn Park is located just north of the city, near the largest health-technology cluster in the country, known as medical alley, and major employers such as Medtronic, Target, and Amazon, as well as easy access to jobs in downtown Minneapolis and St. Paul.
Turner Impact’s holistic approach to workforce housing also entails enriching residents’ quality of life with demand-driven essential on-site services in education, health, safety, and other areas that help build a sense of community. These include after-school tutoring programs, exercise and nutrition classes, community watch programs, and more.
“We are excited to expand our impact to greater Minneapolis and are actively pursuing additional investments in the market,” said Gee Kim, President of Turner Impact’s Multifamily Housing Initiatives. “We welcome and look forward to opportunities to contribute in a meaningful way to the housing solution in this key part of the country.”
Housing initiatives are a core component of Turner Impact Capital’s holistic approach to social impact investing. Since 2016, Turner Impact has raised more than $650 million in equity for its first two housing funds – Turner Multifamily Impact Funds I and II – and has recently launched a third fund, Turner Multifamily Impact Fund III. The new Fund is the firm’s largest to date, targeting between $750 million and $1 billion in total commitments. The Fund has already received strong interest from both U.S. and international investors and will build on the work of its predecessor funds to preserve and enrich workforce housing through the acquisition of existing affordable rental housing at scale.
Turner Multifamily Impact Fund III will also pursue the development of new affordable housing through public-private partnerships, as well as opportunistic investments in and recapitalization of workforce housing projects resulting from market dislocations.
Turner Impact has recently accelerated its expansion by hiring Gary Rodney, a national housing leader, as Managing Director for Housing Initiatives. Rodney joined Turner Impact from Tishman Speyer, where he launched the firm’s first affordable housing platform, and earlier served as Chairman of CREA, a national syndicator of low-income housing tax credits, as well as President of the New York City Housing Development Corporation.
About Turner Impact Capital
Turner Impact Capital is the nation's largest private equity real estate firm exclusively dedicated to social impact. Based in Santa Monica, California, the firm focuses on creating sustainable solutions for many of today's most daunting societal problems by developing and investing in community-enriching infrastructure in densely populated, underserved communities. The firm seeks to generate superior risk-adjusted financial returns by investing in markets with large supply/demand mismatches of core community infrastructure (i.e., workforce housing, public schools, and community-serving healthcare facilities) and a lack of institutional capital. Turner Impact Capital seeks profits with a purpose. Learn more at www.turnerimpact.com or @turnerimpact on Twitter.
REAL ESTATE TECHNOLOGY, MORTGAGE AND LENDING
Businesswire | April 03, 2023
Clarion Partners Real Estate Income Fund Inc. has provided a mezzanine loan to a joint venture between BentallGreenOak and Slate Property Group to refinance the existing loan and fund additional renovations on a multifamily property known as The Biltmore* in New York City. The mortgage has been provided by Affinius Capital.
Located at the northeast corner of 8th Avenue and West 47th Street in Manhattan, The Biltmore was developed in 2003; it is comprised of a total of 464 residential units, 34,626 square feet of commercial space and a 61-space parking garage.
“The Biltmore was a particular opportunity to lend on an existing stabilized multifamily property in Midtown Manhattan, a core market which has demonstrated resilience,” said Managing Director and Clarion Partners Real Estate Income Fund Portfolio Manager Janet Souk. “Most importantly, we are pleased to provide financing to The Biltmore’s experienced sponsors, who will use the funds to complete strategic upgrades for the property’s varied tenants.”
Since BentallGreenOak and Slate Property Group acquired the property in 2018, the joint venture has invested over $30 million to renovate apartment units, upgrade the lobby and amenities, modernize the building’s elevators and complete façade repairs.
Clarion Partners, a leading U.S. real estate investment manager, is part of Franklin Templeton’s alternatives business, which spans a broad range of strategies, including real estate, private credit, hedge funds and secondary private equity and co-investments with approximately $257 billion in assets under management as of December 31, 2022.
About Clarion Partners Real Estate Income Fund Inc.
The Fund offers individual investors direct access to a portfolio of privately-held, income-producing commercial real estate properties through an innovative investment fund driven by Clarion's deep real estate expertise. The Fund is a non-diversified, closed-end management investment company that continuously offers its common stock. The Fund's investment manager, Legg Mason Partners Fund Advisor, LLC is an indirect, wholly owned subsidiary of Franklin Resources, Inc. (“Franklin Resources") and the fund's investment sub-adviser, Clarion Partners, is an indirect, majority-owned subsidiary of Franklin Resources. In addition, the Fund's securities sub-adviser, Western Asset Management, also is an indirect wholly owned subsidiary of Franklin Resources. Hard copies of the Fund's complete audited financial statements are available free of charge upon request. More information about the Fund is available at CPREIF.com.
About Clarion Partners
Clarion Partners, an SEC registered investment adviser with FCA-authorized and FINRA member affiliates, has been a leading U.S. real estate investment manager for 40 years. Headquartered in New York, the firm maintains strategically located offices across the United States and Europe. With $82.4 billion in total assets under management, Clarion Partners offers a broad range of real estate strategies across the risk/return spectrum to its 500 domestic and international institutional investors. More information about the firm is available at www.clarionpartners.com.
About Franklin Templeton
Franklin Resources, Inc. is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 75 years of investment experience and approximately $1.4 trillion in assets under management as of February 28, 2023. For more information, please visit franklinresources.com and follow us on LinkedIn, Twitter and Facebook.
About Slate Property Group
Slate Property Group is a vertically integrated owner, operator, and developer of residential and commercial real estate in the New York metropolitan area. From adaptive reuse and repositioning of existing assets to ground-up development, the Slate team leverages extensive experience in the residential asset class, in-house teams dedicated to the separate phases of a real estate investment, and a regimented approach towards executing a business plan to seek superior risk-adjusted returns for its investors. Over the last decade, the principals of Slate Property Group have purchased in excess of $6.4 billion in real estate assets totaling over 10,000 units across over 50 investments. In order to continue the successful execution of the existing and future real estate projects, Slate employs an experienced and educated team with over 115 full-time employees across its various arms.
REAL ESTATE TECHNOLOGY, REAL ESTATE INVESTMENT
Newswire | May 29, 2023
Canada's leading real estate companies Dream Unlimited Corp., Kilmer Group and Tricon Residential Inc. (together, DKT Partnership) have officially launched Maple House, the first phase of Canary Landing – one of the largest and most significant rental communities in Canada. Altogether, the 12-acre community is comprised of 2,300 rental units – of which 30 per cent will be dedicated as affordable housing and 25 per cent will be barrier-free – creating a model for inclusive, true mixed-income communities across the city.
Canary Landing is located in Toronto's award-winning Canary District community, a pedestrian scale urban village adjacent to the Distillery District in the Downtown East. Canary Landing includes eight mixed-use buildings spanning four city blocks along Cherry Street. In addition to significant market and affordable rental housing, Canary Landing will also include 30,000 square feet of retail and a future 5,000 square foot community space. Canary Landing represents an innovative public-private partnership between the DKT Partnership, the Province of Ontario, the City of Toronto, the Government of Canada, and the Canada Mortgage and Housing Corporation (CMHC), all working collaboratively to create affordable housing solutions at scale.
"We are grateful for the collaboration with our municipal, provincial, and federal partners as we work towards our shared vision for Canary Landing, which will target ambitious LEED Gold sustainability outcomes, and provide long-term market rental and affordable housing. Maple House is the start of fulfilling our promise to create beautiful, sustainable, and affordable housing, and we look forward to seeing residents thrive in this vibrant new community very soon," says Andrew Joyner, Managing Director at Tricon Residential on behalf of the DKT Partnership.
Bringing much-needed affordable housing to the city, the development team is delivering 126 rental homes that will be filled in partnership with seven non-profit agencies from across the city, including: WoodGreen Community Services, Artscape, COSTI, Wigwamen, Performing Arts Lodge, March of Dimes and Interval House. These affordable rental homes will be offered at 40 to 80 per cent below the average market rent. An additional 105 affordable rental homes will be available to the public through a soon-to-be-released open market call. All 231 of the affordable homes have been financially supported by the City of Toronto's Open Door Program.
"We have all watched as Toronto's affordable housing crisis has grown during the past several years," says Anne Babcock, CEO of WoodGreen Community Services. "WoodGreen Community Services is thrilled to be working with other not-for-profit agencies and the DKT Partnership to deliver real and permanent housing solutions to a diverse range of Toronto residents. The Canary Landing initiative is a testament to what we can all do by working together for the common good."
Maple House sets the stage with community-centric amenities and design
Central to the vision for Canary Landing's Maple House is a desire to create beautiful architecture that is inclusive and accessible to all. The acclaimed architecture and design team, which includes Danish firm COBE, along with Canadian firms architectsAlliance and CCxA (Claude Cormier x Associés), focused on creating a design-forward and environmentally responsible community that respects the local heritage. Maple House has already garnered several accolades, including the Canadian Architect Award of Excellence and the 2021 BILD Award for Best New Community.
"Maple House is very special to us. It is not just a city-building project – more importantly, it is a community building project. We have focused a design that is highly contextual, connecting to the fine grain scale of the Distillery District, the prominent scale of Canary District, and at the same time, referencing the industrial heritage of Toronto's waterfront. It results in buildings that both fit in and stand out, and a project that celebrates architectural inclusion and fosters and embraces social diversity and cohesion in this magnificent context," says Dan Stubbergaard, Founder and Owner of Cobe.
"We are incredibly proud to be delivering this truly mixed-income community that is the first of its kind in Canada and a model for city-building," says Joyner. "This type of housing will strengthen our city's social fabric and meet the diverse needs of all Torontonians."
About Dream Unlimited Corp.
Dream Unlimited Corp. is a leading developer of exceptional office and residential assets in Toronto, owns stabilized income generating assets in both Canada and the U.S., and has an established and successful asset management business, inclusive of $24 billion of assets under management across four Toronto Stock Exchange ("TSX") listed trusts, our private asset management business and numerous partnerships. We also develop land and residential assets in Western Canada. Dream expects to generate more recurring income in the future as its urban development properties are completed and held for the long term. Dream has a proven track record for being innovative and for our ability to source, structure and execute on compelling investment opportunities. For more information please visit: www.dream.ca.
About Kilmer Group
Kilmer Group is the privately-held Toronto based investment holding company of Canadian business leader and philanthropist, Larry Tanenbaum O.C. Kilmer operates in three verticals, 1) real estate and infrastructure, 2) sports, entertainment and media and 3) private equity. Kilmer's operations employ over 22,000 people with a long-term, multi-generational horizon and vision. Kilmer brings an entrepreneurial and solutions driven approach to project delivery.
Kilmer has more than 40 years experience in the construction and development industry in Canada and continues to maintain a focus on the infrastructure sector. Kilmer has extensive expertise in large-scale redevelopment and a focus on unique public private partnerships, mid-rise urban infill projects, and master planned communities. Kilmer is proud to have had a hand in the development of over 12,000 homes.
About Tricon Residential Inc.
Tricon Residential Inc. (NYSE: TCN, TSX: TCN) is an owner and operator of a growing portfolio of more than 36,000 single-family rental homes in the U.S. Sun Belt and multi-family apartments in Canada. Our commitment to enriching the lives of our employees, residents and local communities underpins Tricon's culture and business philosophy.
Tricon was the first-mover to enter Toronto's purpose-built rental apartment sector with scale in 2016, and is today the market leader and most active developer in the marketplace. We partner with celebrated architects to create inviting living spaces and inspired amenities, empower our employees to deliver an exceptional service experience with the support of an innovative technology enabled platform, and build resident community through programming and events to foster meaningful connections. At Tricon, we have reimagined rental living.