Fairfield Residential
Update
10/18/22
Fairfield Affordable Housing Preservation Open-End Fund Closes ~$600MM
Fairfield has launched a new open-end affordable housing fund with ~$600 million of equity commitments closed to date in 2022. The Fairfield Affordable Housing Preservation Fund (the “Affordable Fund”) is focused primarily on acquiring rent and income-regulated affordable housing assets in markets throughout the U.S. The Affordable Fund is Fairfield’s first affordable housing-focused investment vehicle open to third party investors and will leverage Fairfield’s 20-year history of investing and managing Low Income Housing Tax Credit (“LIHTC”) multi-family assets, which currently represents $3.3 billion of Fairfield’s $10.3 billion total assets under management.
Josh Kawaii-Bogue, Executive Vice President and Senior Fund Manager said, “Fairfield has long recognized the opportunity to invest responsibly in affordable housing. As an experienced operator and manager of over 50 LIHTC properties in 20 markets across the U.S., Fairfield has been able to provide an institutional level of care to the investments we make in this regulated apartment sector. We want our residents to benefit from the added capital improvements and services offered to the communities where they reside.”
Richard Boynton, President of Fairfield, added, “As we enter a new phase of the global economy with new challenges and uncertainty, but also, new investment opportunities, we believe the LIHTC affordable housing space can provide a multifamily strategy that is defensive with low volatility, even in a period when the economy and capital markets may be highly volatile. High occupancy and low turnover at LIHTC properties, have historically resulted in stable and consistent performance over a long duration, even during recessions.”
The Affordable Fund is focused primarily on acquiring LIHTC assets with long-term rent and income regulatory agreements in place and has begun acquiring assets. Fairfield is currently raising Founders Round capital with a target of $1.0 billion of equity commitments. The ~$600 million of closed equity commitments includes a mix of U.S. and global pension funds and foundations.
Trey Stafford, Head of Capital Markets Fundraising, said, “As we continue to expand our multifamily strategies and investor base, we are excited to see our existing investor base and new investors to Fairfield recognize the investment opportunity of this strategy and how it is differentiated from other multifamily strategies. This fund also promotes and supports environmental, social and governance (ESG) in a material way. That, along with Fairfield’s specific expertise in a complicated and highly regulated LIHTC space, is something that has resonated with U.S and global investors and consultants.”
Fairfield is also pleased to announce that the subscription financing line within the Affordable Fund was designated as a social loan. The social loan is in accordance with the Social Loan Principles (SLP) published by Loan Syndications and Trading Association (LSTA), in which the social loan market aims to facilitate and support economic activity which mitigates social issues and challenges, and/or achieves positive social outcomes. The net proceeds of the Affordable Fund’s social loan are committed to providing affordable housing by investing primarily in rent and income regulated affordable housing for low-income residents and families.
Fairfield is a fully integrated real estate company that currently has approximately $10.3 billion in assets under management in various multifamily acquisition, development, and debt strategies.
