Last month, The Vistria Group announced that it has raised more than $2.5 billion for affordable housing, making it one of the largest vehicles for that sector in the United States, according to a news release.
Vistria has already acquired more than 7,000 units, over 80% of which are affordable, with the fund, which launched in March 2023.
“Institutional investors are recognizing what we’ve long known — high-quality affordable and workforce housing isn’t just essential, it’s one of the most durable and scalable asset classes in real estate,” Margaret Anadu, a senior partner at The Vistria Group who leads and co-founded the firm’s real estate strategy, said in the release.
Vistria said its affordable housing strategy has attracted public pensions, global investment banks and asset managers, leading U.S. foundations, insurance companies and some of the largest family offices in the U.S. and Europe. The firm’s housing strategy is intended to demonstrate how institutional capital can be deployed at scale to drive market returns while also addressing the affordable housing crisis.
The firm, which partners with local and state leaders to deliver housing, focuses on preserving, improving and producing affordable and workforce housing through acquiring existing affordable units, converting market-rate housing to affordable housing and developing new mixed-income housing.
Vistria has made 15 investments spanning New York, Texas, Georgia, California, Michigan, Illinois and Washington, D.C. More than 2,000 units in the portfolio were formerly market-rate units converted to affordable housing.
The firm, which has almost $16 billion in assets under management, invests in essential industries like healthcare, knowledge and learning solutions, financial services and housing.
Other major players are also raising funds to address affordable housing. In March, Clear Investment Group announced it plans to raise $300 million through its Clear Opportunities Fund II to acquire workforce properties nationwide. The Chicago-based apartment owner is focusing on properties with strong fundamentals and untapped potential in stable markets where workforce housing supply is low.
“The fund is acquiring large, 500-unit-plus multifamily portfolios in secondary and tertiary markets throughout the U.S., with a focus on submarkets where household income is $35,000 to $75,000 — really the heart of working America,” Amy Rubenstein, CEO of Clear Investment Group, told Multifamily Dive.
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