WASHINGTON--(BUSINESS WIRE)--Center Creek Capital Group is pleased to announce that it has secured nearly $30 million of capital in its 1st closing for its latest affordable Single-Family Rental (SFR) fund, Center Creek Housing Fund III (CCHF III). Center Creek Housing Fund III offers investors and the community a win-win: For investors, CCHFIII will seek to provide market-rate returns from single-family rentals, one of the best performing real estate sectors since the onset of the pandemic. At the same time, CCHFIII offers traditionally underserved low- and moderate-income residents access to quality, robust affordable housing as well as Center Creek’s financial literacy programs that promote racial equity and economic inclusion.
The round was anchored by Capricorn Investment Group’s Sustainable Investors Fund along with Truist Bank, the Regions Foundation, and a number of family offices.
“Center Creek has proven that investors don’t have to choose between achieving financial returns and driving social impact — they can do both,” said Dan Magder, Managing Partner of Center Creek Capital. “We believe CCHF III’s scale will drive competitive economic returns for our investors that can meet or exceed industry benchmarks, while also enabling us to carry out our mission of using housing as a delivery mechanism to promote racial equity and economic inclusion for thousands of individuals and families.”
Center Creek’s funds offer an innovative market-driven approach to address the need for affordable housing by acquiring distressed single-family properties and conducting value-added renovations to create durable, comfortable and energy-efficient homes for residents. For investors, the funds seek to provide near-term cash flows along with value appreciation over time, as well as a natural hedge against inflation and rising interest rates. Single-family rentals represent more than half of the rental market in the U.S., and they provide families with a foundation of stability through quality rental housing.
“Capricorn was attracted to Center Creek’s model as a differentiated and impact-oriented platform within the emerging SFR industry,” said William Orum, Partner at Capricorn. “Center Creek offers institutional investors a scalable opportunity to achieve financial returns anchored by SFR cash flow and appreciation while meeting their impact investing goals.”
The community benefits from the social and economic impact generated by affordable housing as well as vital services promoting racial equity and economic inclusion that the Center Creek platform provides. This includes Center Creek’s unique Pathway 2 Homeownership (P2H) Program, which helps low- and moderate-income individuals and families buy the homes they are renting, and Center Creek Internet Connections, which provides in-home broadband and a tablet or computer to access the internet to bridge the digital divide. Based on Center Creek’s focus on serving low- and moderate-income (LMI) residents, banks that invest in CCHFIII may qualify for credit under the Community Reinvestment Act (CRA).
“Truist’s long history of investing in affordable housing reflects our commitment to our purpose: inspiring and building better lives and communities,” said Keitt King, Head of Truist Community Capital. “Investing in Center Creek provides an innovative solution that increases the availability of single-family rentals and expands our ability to provide affordable housing and life-changing programs that help transform communities and lives.”
“Affordable housing is critical to addressing issues of racial and economic equity,” said Marta Self, Executive Director of the Regions Foundation. “But also impactful are Center Creek’s financial literacy program and the opportunity to help renters become homeowners through Pathway 2 Homeownership. These programs help families who have been underserved historically to build wealth over time that they can pass on to future generations.”
Center Creek operates in markets across the Southeast U.S. including Atlanta, Birmingham, Tampa, and Jacksonville. CCHF III will seek to expand the platform’s footprint to additional markets in North Carolina, South Carolina, and Florida. Center Creek’s experienced SFR team is supported by an Investment Advisory Board made up of top real estate investment professionals and a Social Impact Advisory Board of national thought leaders in affordable housing.
“Over the past 15 years, we have worked with more than 200 impact private equity funds, and Center Creek Housing Fund III demonstrates two important truths about impact investing," said Shawn Lesser Co-Founder and Managing Partner of Big Path Capital. "You don't have to sacrifice returns to make a positive impact, and even the largest institutional investors can invest at scale in way that creates positive change across their local communities."
About Our Investors:
Capricorn Investment Group was founded two decades ago initially as a private investment firm managing capital on behalf of Jeff Skoll – co-founder and first President of eBay – as well as the Skoll Foundation. Capricorn has grown to become one of the largest mission-aligned investment firms in the world and seeks to generate superior investment results by supporting entrepreneurship and innovation that address the world’s greatest challenges. The Sustainable Investors Fund was formed to provide catalytic capital to asset managers that integrate innovation and sustainability to scale investment solutions to these challenges.
Truist Financial Corporation is a purpose-driven financial services company committed to inspiring and building better lives and communities. Formed by the historic merger of equals of BB&T and SunTrust, Truist has leading market share in many high-growth markets in the country. The company offers a wide range of services including retail, small business and commercial banking; asset management; capital markets; commercial real estate; corporate and institutional banking; insurance; mortgage; payments; specialized lending; and wealth management. Headquartered in Charlotte, North Carolina, Truist is a top 10 U.S. commercial bank with total assets of $522 billion as of June 30, 2021. Truist Bank, Member FDIC. Learn more at Truist.com.
The Regions Foundation supports community investments that positively impact the communities served by Regions Bank. The Foundation engages in a grantmaking program focused on priorities including economic and community development; education and workforce readiness; and financial wellness. The Foundation is a nonprofit 501(c)(3) corporation funded primarily through contributions from Regions Bank.
Big Path Capital is acting as placement agent for Center Creek Housing Fund III. Founded in 2007, Big Path is the leading investment bank for positive impact companies and funds. With one of the largest networks of impact investors, the firm has worked with more impact companies and funds than any other investment bank in the world. Companies and funds engage Big Path for capital raises, company exits, and founder and shareholder liquidity. Big Path is proud to be a certified B Corporation since 2007.
For more information visit www.centercreekcapital.com or contact info@centercreekcapital.com.
