Eva Longoria, Actor, Business Owner and Social Activist, and Bobby Turner, CEO, Turner Impact Capital
Turner Impact Capital, a Los Angeles-based investment firm focusing on social-impact investing, is joining forces with actor, business owner and social activist Eva Longoria to acquire workforce housing.
The strategy has proven successful for Turner Impact Capital's CEO, Bobby Turner, the former chairman and CEO of Canyon Capital Realty Advisors, who has partnered with such athletic celebrities as tennis star Andre Agassi and basketball legend Magic Johnson.
The firm is aiming to acquire up to $1 billion in apartment communities in urban markets throughout the U.S. through its Turner Multifamily Impact Fund. In a twist to other multifamily investors, TIC's investment strategy is focused on acquiring apartment communities whose residents earn less than 80% of the area median income and live in densely populated, ethnically diverse communities throughout the US.
Longoria will become a partner and an ambassador for the Turner Impact fund, helping to raise awareness about the workforce housing shortage. Other investors in the fund include Citi Community Capital, the University of Michigan endowment and the Rockefeller Brothers Foundation.
"Turner Impact Capital’s investment strategies directly benefit a broad cross-section of urban residents, including Latinos, the youngest and one of the fastest-growing demographic groups in the United States," Longoria said. "Despite their potential, Latinos disproportionately lack housing opportunities and face overwhelming economic challenges. The work of Turner Impact Capital supports the most effective interventions in breaking the cycle of poverty: promoting excellence in our schools and bringing new investment to our cities."
Demand for affordable workforce rental housing in the most populated areas of the country is expanding, with many jurisdictions grappling with the issue, due in part to higher land and construction costs.
Increased development costs and declining public subsidies have constrained development of new units, according to the Urban Land Institute’s Terwilliger Center for Housing. Meanwhile, thousands of older, subsidized developments are approaching the end of their federally required rent restrictions, making them vulnerable to conversion to market rates as value add real estate investors seek yield through repositioning opportunities in a hypercompetitive environment.
According to ULI, nearly half of all renters spend more than 30% of their income on rent and one quarter of all renters spend more than 50% of their income on rent.
Turner Multifamily Impact Fund is among a handful of preservation-focused private equity investment funds seeking to preserve the workforce-housing status of the properties it acquires. Since its launch in a year ago, Turner Multifamily Impact Fund has invested more than $140 million to purchase nearly 2,500 units in Maryland, Florida, Texas and Nevada.
Turner Capital investment strategies: read the full article HERE.