More than 4,100 Rental Homes to Remain Affordable through Joint Venture between TIAA Investments and Enterprise Homes
The impact investment preserves the affordability of homes throughout Mid-Atlantic region
BALTIMORE – Aug. 30, 2017 – More than 4,100 rental homes will remain affordable to low-income residents in Maryland, Pennsylvania and Virginia, thanks in part to a joint venture between TIAA Investments and Enterprise Homes, a nonprofit affordable housing developer that is part of the Enterprise Community Partners family of companies. TIAA Investments and Enterprise Homes jointly invested in a fund that Enterprise Homes formed to acquire the portfolio from The Shelter Group. The investment aims to address the growing affordability challenges facing communities across the U.S.
The apartments were acquired by Enterprise Homes as part of its purchase of The Shelter Group’s entire affordable housing portfolio of 43 properties located in the mid-Atlantic. Enterprise Homes plans to continuously preserve the affordability of these properties, offering tenants stable, affordable rental homes over the long term.
“Securing the right investment partner needed for this type of large-scale, complex transaction can be extremely difficult, which is why we’re so grateful to partner with TIAA Investments on financing this acquisition,” said Chris Herrmann, vice president, Conventional Equity, Enterprise Community Investment. “Nearly 19 million low-income families in the U.S. are homeless or paying at least half of their monthly income on housing. TIAA Investments’ $50 million contribution shows a commitment to ending our country’s affordability challenges and improving the lives of hard-working Americans nationwide.”
The 4,153 original apartments were originally financed through the Low-Income Housing Tax Credit, America’s main tool for creating and preserving homes affordable to low-income families, seniors, veterans and people with special needs.
“Preserving and improving the affordable housing stock in the United States are focal points of our impact investment portfolio so we’re especially pleased to deploy capital in properties that help meet the affordability needs in our country,” said Rekha Unnithan, director of impact investing at TIAA Investments. “This investment opportunity was particularly attractive given the properties were consistently of high quality, are located in high-demand markets and offer steady cash flows.”
TIAA Investments is an affiliate of Nuveen, the investment management business of TIAA, and manages the company’s impact investment portfolio.