"Jonathan Rose Companies achieve closure on $660 million Impact Fund"
Jonathan Rose Companies has announced the finalization of its Rose Affordable Housing Preservation Fund VI, a $660 million fund dedicated to acquiring, preserving, and improving affordable housing in high-demand U.S. markets. The fund, which has attracted diverse institutional investors such as Capital One and the Ford Foundation, employs a strategic approach to address the critical shortage of affordable housing and create healthier, more sustainable communities.
The key strategies of Fund VI aim to preserve long-term affordability, target high-risk, transit-oriented, opportunity-rich neighbourhoods, reinvest and transform properties, green the properties, integrate resident services and programming, and deliver strong investor value while creating social impact.
Preserving long-term affordability is a priority for the fund, with a focus on sustaining affordable housing in major urban markets like New York, Boston, Chicago, San Francisco, Southern California, Seattle, Denver, and Washington D.C. Investments will be made in properties located in areas with strong transit access and socioeconomic opportunity, which face high housing costs and market pressures.
Fund VI goes beyond preservation by reinvesting in aging properties ready for transformation, turning them into platforms for opportunity. This involves modernization and thoughtful improvements to enhance community health and resilience. A core strategy is to implement energy-efficient and climate-resilient upgrades, such as retrofitting properties with efficient HVAC systems, water-saving fixtures, and solar panels, and certifying them to standards like Enterprise Green Communities.
The fund also supports on-site resident services that promote economic mobility, health, education, and community resilience, treating real estate as a platform for holistic social impact beyond just housing. Environmental performance will be reported annually, and the fund targets environmental goals, including a 20% reduction in energy use and emissions and a 15% reduction in water use within ten years.
Jonathan F.P. Rose, President of Jonathan Rose Companies, emphasises that affordable housing is a critical and investable challenge. The expanded partnership between the Ford Foundation and Jonathan Rose Companies aligns with the Ford Foundation's impact investing goals. Roy Swan, Director of Mission Investments at the Ford Foundation, highlights the timeliness and criticality of the investment in Fund VI.
The Preservation Fund series now has over $1.5 billion in total equity, and the investment strategy of Fund VI delivers strong value for investors. These communities will offer residents stability, access to essential resources, and a foundation for a better future. Fund VI will create healthier, more sustainable, and resilient communities for residents, helping to address the critical shortage of affordable housing and promote social impact.
- The strategic approach of Fund VI includes focusing on greening properties by implementing energy-efficient and climate-resilient upgrades, such as retrofitting properties with efficient HVAC systems, water-saving fixtures, and solar panels.
- Environmental performance will be reported annually, and the fund targets environmental goals, including a 20% reduction in energy use and emissions and a 15% reduction in water use within ten years.
- In the realm of investments, Fund VI aligns with the Ford Foundation's impact investing goals, with Roy Swan, Director of Mission Investments at the Ford Foundation, acknowledging the timeliness and criticality of the investment in Fund VI.
