Why Institutional Investors Haven’t Made a Big Splash in Affordable Housing
Affordable housing properties just don’t have the scale to attract institutional investors. Quote by Jonathan Needell | GlobeSt.com March...
June 1, 2023
Institutional investors have grown more interested in US affordable housing – as have the government- sponsored finance agencies and state and local governments – as the undersupply in the country has grown.
The impact of environmental and social initiatives can also be measured on both the project and community level, says Carl Chang, chief executive of Kairos Investment Management, a real estate investment company based in Irvine, California. For Kairos, return on cost is tracked for some ESG initiatives to show investors how ESG generates economic returns. For example, ESG initiatives that save water or energy can accrue property value, he says.
Adapting to Interest Rates
So far this year, rising interest rates and bank failures have disrupted capital markets and slowed dealflow for affordable housing projects, but Chang expects transaction volume in the space to rebound in the second half of 2023 and into 2024.
Buyers are attracted by the opportunity – both the resilient returns for the sector and the continuing shortage of affordable housing throughout the US. The high cost of capital, inflation and shortages of construction labor have also conspired to limited new construction of affordable housing, which boosts long-term investment strategies in affordable housing.
“People are beginning to understand that we want that healthy society, and they are able to provide for this very important need of putting roofs over people’s heads and providing affordability, and not just Class A multifamily and high-priced development,” Chang says.
* The information contained herein is for general, informational purposes only and is not intended to constitute an offer to sell or buy any securities or other assets or promise to undertake or solicit business, and may not be relied upon in connection with any offer or sale of securities or other assets.
Affordable housing properties just don’t have the scale to attract institutional investors. Quote by Jonathan Needell | GlobeSt.com March...
Vigour Times February 28, 2022 Rancho Santa Margarita-based Kairos Investment Management Co. recently acquired a 238-unit affordable apartment complex...
Connect CRE California September 15, 2023 Kairos Investment Management Company, a $4.2-billion real estate private equity and debt platform...
Connect CRE March 28, 2022 On both the consumer side, and the business side, the emergence of insuretech, fintech and, of...
Connect CRE Atlanta & Southeast April 21, 2022 Kairos Investment Management Company has acquired Walton Crossing, a 238-unit affordable multifamily...
Connect CRE May 25, 2023 Earlier this month, the Federal Reserve increased its Effective Federal Funds Rate (EFFR) by one quarter...
KIMC has seen strong rent collections in both its multifamily and commercial portfolio since the onset of the pandemic....
Procter & Gamble became the latest company to announce it will raise its prices in September to respond to higher commodity...
18101 Von Karman, Suite 1100
Irvine, CA 92612
(949) 709-8888
(949) 800-8500
investorreporting@kimc.com
Copyright © 2024 Kairos Investment Management Company | Disclosures
Kairos Investment Management Company is an Equal Opportunity Employer and, as such, does not discriminate in employment on the basis of an applicant or employee’s race, ethnicity, ancestry, national origin, color, sex, pregnancy (or related medical conditions), childbirth, family status, gender, gender identity or gender expression, age, religion, marital status, sexual orientation, disability, medical condition, military or veteran status, reproductive health decision making, or any other protected classification or characteristic under applicable federal, state or local law. Kairos will not discriminate against an applicant or employee who has one or more protected classifications, is perceived or regarded as having one or more protected classifications, or is associated with someone who has one or more protected classifications.
Kairos Investment Management Company will also provide reasonable accommodations to applicants and employees who may need such accommodations in connection with employment with Kairos on the basis of their disability, religion, status as a victim of domestic violence or pregnancy. An applicant who needs an accommodation in order to pursue employment with Kairos should contact Human Resources at HR@KIMC.com to request such accommodations. Kairos will engage in a good faith interactive process with the applicant to explore accommodations that will be effective, reasonable and not create an undue hardship.
You can see how this popup was set up in our step-by-step guide: https://wppopupmaker.com/guides/auto-opening-announcement-popups/
You can see how this popup was set up in our step-by-step guide: https://wppopupmaker.com/guides/auto-opening-announcement-popups/