Salt Lake City-based Bridge Investment Group Holdings closed its latest fund with $1.74 billion in capital commitments, well ahead of its $1.5 billion target.
Bridge Workforce and Affordable Housing Fund II invests in non-government subsidized housing where at least 51% of the residents earn below 80% of the local area median income. Officials are looking to meet the needs of the large and price-out “missing middle” of U.S. renters.
“We believe this represents the largest fund ever raised purely dedicated to the preservation of affordable housing in America,” commented Rachel Diller, co-chief investment officer for Bridge’s Workforce and Affordable Housing strategy, in a press statement. “The U.S. has an affordable housing crisis, with an estimated 10.5 million households paying more than 50% of their annual incomes for housing. Currently, 82% of our Workforce and Affordable Housing residents earn less than 80% of AMI, and over 96% are not cost-burdened, typically defined as spending more than 30% of income on rent.”
The fund is part of the $42 billion firm’s ESG mission. There is also dedicated onsite social and community programming that focuses on life-enhancing services at each of the assets in the fund, which the team hopes will drive more equitable outcomes, according to Robert Morse, executive chairman at Bridge.
The firm plans to commit more than $40 million as part of that programming initiative that is focused on education, financial wellness and health.
“Preschool and afterschool programs, adult education, and onsite health equity create a sense of community, empowerment, and extraordinary energy at our communities,” said Inna Khidekel, senior managing director and head of Bridge Gives. “Using a detailed set of GIIN IRIS and UN SDG metrics, Bridge seeks to measure how our efforts drive social and economic mobility while showing to the market that doing well while doing good can be mutually reinforcing.”