Los Angeles-based social investing firm Turner Impact Capital is getting a big assist from NBA superstar Chris Paul who has joined the firm as an investor and ambassador seeking to bring attention and scalable solutions to the challenges faced by millions of working-class families struggling to find quality affordable housing.
With the backing of Paul and some of the nation’s most respected investors, the firm has successfully closed the Turner Multifamily Impact Fund, which is now positioned to acquire up to $1 billion in apartment communities in urban markets throughout the United States.
The Fund has already made strategic acquisitions in the Washington D.C., Dallas, Austin, San Antonio, Miami and Las Vegas markets, with many more planned this year.
The Turner Multifamily Impact Fund is taking direct aim at the shortage of quality, affordable workforce housing in U.S. population centers where demand is high but affordable housing stock is limited due to an imbalance in supply and demand, accelerated redevelopment of existing apartment communities to luxury status, and the prohibitively high cost of land and construction.
As a result, rents are reaching historic highs with nearly half of all renters in America spending more than 30% of their income on rent and one quarter of all renters spending more than 50% of their income on rent.
“The growing disparity between workers’ income and their rent is untenable, and comes at the expense of health care security, food security and retirement security,” said Bobby Turner, CEO of Turner Impact Capital.
“Our housing fund addresses these daunting challenges by preserving the workforce housing status of the properties it acquires and implementing targeted physical upgrades and property management improvements that enhance day-to-day operations and the quality of life for their residents.”
“I am enthusiastic to team up with Bobby and the team at Turner Impact Capital to help tackle this housing affordability challenge on behalf of hard-working families living in communities throughout America, including the one where I grew up in North Carolina,” said
Paul, a high-impact player on and off the court. He is a nine-time NBA All-Star, two-time Olympic gold medalist and serves as president of the National Basketball Players Association. “I want to see results, and this model delivers them for working people like teachers, nurses and firefighters who are getting squeezed when it comes to housing.”
In his new role, Paul will provide insight and help spread awareness of the role that creative, market-driven solutions can play in addressing some of the nation’s most pressing challenges. Paul will join actress and philanthropist Eva Longoria, who invested and partnered with the Turner Multifamily Impact Fund in 2016 to accomplish similar objectives on behalf of working families.
Dedicated to generating “profits with a purpose,” Turner Impact Capital is an acknowledged leader and innovator in the growing field of social impact investing – an investment approach that takes into account two goals: generating positive, risk-adjusted financial returns and creating purposeful, measurable, and positive social and environmental impact through those investments.
Founded in 2014, the firm is on course to surpass $2.5 billion in investment potential to address a multitude of challenges facing urban neighborhoods while delivering superior risk-adjusted returns for its investors.
The Turner Multifamily Impact Fund is designed to create a “pride in rentership” that boosts occupancy by delivering community-enriching services that motivate residents to live in the apartment communities for a longer period of time. That in turn drives operating efficiencies and profitability for ownership without the need to increase rents on tenants.
The Fund’s leadership team is focused on acquiring, improving and preserving critically-needed workforce housing for those earning up to 80% of area median income. Residents include community serving professionals such as teachers, police officers, health care workers, service workers and others who earn too much to qualify for subsidized housing, but not enough to afford higher cost apartments or home ownership in the communities proximate to where they work.
“The Fund’s ability to invest in apartment communities and keep rents stable makes a huge difference for working families,” said Paul. “We not only help families by stabilizing rents, but we also enrich the communities with important services like neighborhood watch, health care screenings, employment assistance and afterschool tutoring that bring great value to children and parents.”
“Workforce housing is an overlooked segment of the real estate market with a significant mismatch in supply and demand that we believe offers a compelling investment opportunity,” said Turner, who is encouraged by the increased appetite for social impact investments from institutional investors who recognize that achieving strong risk-adjusted financial returns and making societal change are not mutually exclusive. Investors in the fund include Citi Community Capital, the University of Michigan endowment, the Texas Permanent Land Fund and the Rockefeller Brothers Fund.
In addition to its multifamily strategy, Turner Impact Capital is focused on two additional investment strategies to help address some of the country’s most pervasive social issues through real estate and infrastructure-related solutions. The firm’s targeted education strategy – the Turner-Agassi Charter School Facilities Fund, a partnership with tennis legend Andre Agassi – seeks to meet the growing demand for quality charter school facilities, improving the educational achievement and life outcomes for underserved students.
Additionally, the firm is in the process of launching the Turner Healthcare Facilities Fund, which will seek to address the significant demand for quality healthcare facilities that deliver affordable and proximate patient-centered medical services to underserved communities.
Turner Impact Capital is an investment management firm based in Los Angeles focused on creating sustainable solutions for many of today’s societal problems by developing and investing in community-enriching infrastructure in densely-populated, underserved communities. The firm seeks to generate superior risk-adjusted financial returns by investing in markets with large existing supply/demand mismatches of relevant community infrastructure (i.e. workforce housing, public schools and community-serving healthcare facilities) and a lack of institutional capital.