Jonathan Rose Companies has raised $660 million from an affordable housing fund that will target markets from the Northeast to the West Coast.
According to the New York-based firm, Rose Affordable Housing Preservation Fund VI will act not only by acquiring but also by enhancing and preserving affordable and mixed-income multifamily housing. It will target properties in urban markets, including Denver, Seattle, New York, Chicago, Boston, San Francisco, Southern California and Washington D.C.
Additionally, the fund will deploy capital across other neighborhoods in areas identified as opportunity-rich in hopes of addressing the housing crisis.
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The biggest issue currently is supply, with the National Low Income Housing Coalition recently estimating that the affordable housing sector faces a shortfall of seven million units. Also, the nonprofit estimates that more than 20 million Americans are allocating more than 50 percent of their earnings on housing. To make matters worse, Jonathan Rose Companies noted that 100,000 affordable homes are permanently axed from the market annually.
Moreover, the fund is aiming to address climate change by cutting greenhouse gas emissions by 20 percent and cut energy use within the portfolio by 20 percent in a decade's time.
Over three years, Fund VI is hoping for returns ranging between 10 and 12 percent, according to a spokesperson with Jonathan Rose Companies.
"With Fund VI, we are not only preserving long-term affordability but also reinvesting in properties ready for transformation and turning them into platforms for opportunity," Jonathan F.P. Rose, president of the firm, said in a statement.
"These will be healthier, more sustainable and resilient communities that offer residents stability, access to essential resources, and a foundation for a better future, while delivering strong value for our investors. It’s a strategy rooted in decades of experience, but deeply attuned to the needs of this moment.”
Jonathan Rose Companies, in its experience in affordable housing, has fetched over $1.5 billion in equity to date through its preservation funds.. This includes $525 million from a round in 2020. Also, about 90 percent of the almost 20,000 preserved and enhanced homes it has managed are affordable.
In June, multifamily rent growth on average increased by 0.9 percent year-over-year. The strong gains were in Chicago at 3.6%, Columbus at 3.3%, Kansas City at 3.2% and Detroit at 2.9%. Meanwhile, some markets like Austin and Denver saw rent declines during the month.
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Anthony Russo
Anthony Russo has been contributing to GlobeSt. since July 2024. Along with CRE, his financial background expands to capital markets, the economy, and consumer issues. Previously, he has written for CapitalWatch and was a senior reporter for The US Sun.
