Women-owned US real estate investment and development platform MSquared has raised an initial $139m (€119m) for its mixed-income housing fund.
The Equitable Housing Solutions Fund II (EHSF II) was backed by a range of repeat and new partners, including Citi Community Capital, Bank of America, Trinity Church NYC, Capricorn Investment Group and Deutsche Bank.
EHSF II is focused on developing mixed-income, mixed-use projects nationwide, with a $250m fundraising target to finance over $1bn in new housing.
The fund has already closed on investments in Dallas, Texas and Everett, Washington.
Alicia Glen, founder and managing principal of MSquared, said: “By focusing on providing mixed-income housing in high-growth, high-cost areas, this fund both addresses the breadth of the affordability crisis and capitalises on an investment opportunity not otherwise available in the private markets.
“Having been in the real estate business for decades, it’s clear that the traditional approach to housing development is not working and it’s time to do things differently – that means investing in innovative projects and ensuring that underrepresented developers and operators are part of the solution.”
Jeremy Johnson, head of Citi Community Capital, said: “We are proud to be a lead investor in MSquared’s EHSFII, which develops mixed-income housing in growing, supply-constrained markets.
“Financing affordable, workforce and mixed-income housing nationwide is our top priority. By prioritising new units and focusing on mixed-income projects, EHSF II stands out from other housing funds to deliver social impact and long-term value in communities across the country.”
Meredith Jenkins, CIO for Trinity Church NYC, said: “Affordable housing is the cornerstone of thriving, equitable communities and we believe EHSF II will catalyse this type of development that so many cities around the country urgently need.
“This fund reflects our values by building long-term affordability in high-growth, high-opportunity areas. MSquared is disrupting the status quo of traditional real estate investment and we are pleased to partner with them again to advance our shared vision for inclusive development.”
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