SoLa Impact Announces $50 Million Investment in "Black Impact Fund" by CalSTRS
A Brief Summary
SoLa Impact, a minority-led affordable housing developer, said it received a commitment worth $50 million to its Black Impact Fund from the California State Teachers' Retirement System through a joint venture with Belay Investment Group.
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Following the investment, the total amount in the Black Impact Fund soared to over $250 million. The developer will close the fund once it reaches a target of $300 million.
SoLa Impact has plans to invest in affordable and workforce housing, focusing on communities of colour in California. Workforce housing means middle-income earners, making between 80 and 120 per cent of an area's median income, while tenants make up to 80 per cent of an area's median income.
CalSTRS' investment follows an investment from Paypal worth $25 million, which will be used for housing projects in opportunity zones.
The other contributors to the Black Impact Fund include Ally Bank, Potenza Capital, Pacific Premier Bank and Adirondack Capital.
SoLa can work on “quality new construction at a cost basis that allows for attractive investor returns while offering rental rates that low- and middle-income residents can afford,” Julie Donegan, who works with CalSTRS’ real estate team, said in a statement.
The investment came when the rate of affordable housing had soared across the state. SoLa, at the moment, is working on a 195-unit rental complex in Park Mesa Heights along with an 84-unit complex in Westmount.