Dedicated to social impact, Turner Impact Capital has launched its third multifamily housing fund to help address the nation’s housing affordability crisis.
According to the real estate investment firm, Turner Multifamily Impact Fund III (TMIF III) is expected to raise up to $750 million of equity, unlocking more than $2.3 billion in investment to acquire existing or develop new workforce housing communities in high-demand markets.
So far, the fund has acquired the 336-unit Topaz Springs Apartments in Las Vegas, built in 1995, and the 147-unit B-Side Apartments, built in 2021, in Minneapolis. These properties meet the fund’s criteria of providing affordable workforce housing in diverse and densely populated locales near job centers. The fund also is under contract to acquire three more properties. These five transactions comprise nearly 1,300 units and over $200 million of capital.
“As working families struggle to find quality housing they can afford, there is an urgent need for innovative, market-driven solutions that deliver measurable and lasting results for residents, communities, and investors,” said Turner Impact Capital CEO Bobby Turner. “Through these first two acquisitions and many more to follow, we are once again demonstrating that well-designed impact investing can create scalable and sustainable solutions to our country’s daunting housing challenge.”
TMIF III is expected to build upon the success of the firm’s previous two housing funds, which together included more than $650 million of equity into the preservation of approximately $2 billion of housing for low- to moderate-income households in addition to strong risk-adjusted returns for the institutional investors. The latest fund also will consider new development projects, joint ventures, public-private partnerships, and recapitalizations to expand workforce housing opportunities.
“TMIF III will enlarge and extend our ability to maintain affordability, deliver high-impact resident services, and generate strong returns for investors all at the same time,” said Gary Rodney, managing director of Turner Impact’s Multifamily Housing Initiatives. “We’re thrilled that our newest multifamily fund is off to a strong start, deepening our investments in Las Vegas and Minneapolis with more metropolitan areas to follow.”
According to the firm, in connection with the growth, the fund will also help expand its professional team.
Turner Impact Capital has a focus on boosting positive social and environmental impacts. At the newly acquired properties, on-site enrichment, such as after-school tutoring, fitness and nutrition classes, and financial literacy programs, will be designed and delivered for free to residents. Its communities have delivered over 270,000 program participant hours since 2016 and earned satisfaction rates of over 90%. It also focuses on sustainability retrofits, operational improvements, and resident education to improve climate resilience and drive reductions in electricity, gas, and water usage.
“Our financial strength and access to capital enable us to move quickly on investment opportunities arising from market dislocations with mission-aligned partners,” added Gee Kim, president of Turner Impact’s Multifamily Housing Initiatives. “Our track record of creating positive social, environmental, and financial outcomes through the successful execution of our strategy positions us well as we launch our latest fund.”
