Jonathan Rose Cos. has closed its Affordable Housing Preservation Fund VI at $660 million. This marks the largest investment vehicle the company has ever raised, bringing the overall garnered capital of the income-restricted fund series to more than $1.5 billion.
Contributors—75 percent of which were returning investors—included pension funds, banks, foundations, endowments and family offices. Capital One and the Ford Foundation were among the key sponsors.
Jonathan Rose earmarked the capital toward the acquisition, preservation and renovation of affordable and mixed-income properties throughout markets such as New York, Boston, Chicago, San Francisco, Seattle, Denver, Washington, D.C., Southern California, as well as other transit-oriented locations.
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The company aims to tackle affordable housing challenges by investing in subsidized properties, as well as naturally occurring workforce housing assets. Combining equity with various incentives isn’t a tactic utilized solely by Jonathan Rose, as a recent Yardi Matrix study found 26,000 affordable properties layered more than 250 different subsidies in their capital stacks.
The company already deployed some of the investment fund’s equity for the purchase of Webster House in Chicago. The 186-unit, partially affordable asset traded for $55.1 million in November 2024, Yardi Matrix data shows. JPMorgan Chase issued a $31.5 million loan for the acquisition.
Fund VI aims to reduce the climate impact of targeted properties and provide residents with social services. Aligned with its green building and sustainability practices, Jonathan Rose plans to reduce portfolio-level energy usage by 20 percent, water consumption by 15 percent and greenhouse gas emissions by 20 percent, all within ten years.
Jonathan Rose’s investments into affordable housing
Jonathan Rose has preserved and modernized approximately 20,000 units, 90 percent of which are income restricted. As of July, the firm had $4.6 billion in assets under management.
The company’s previous five rounds of funding yielded $967 million in capital commitments, with Jonathan Rose investing the proceeds in $2.9 billion worth of acquisitions as of 2022.
Outside of acquisitions, the company is also actively developing affordable properties. Earlier this year, it partnered with Wakeland Housing & Development Corp. to bring online an all-electric, income-restricted community in Los Angeles. Dubbed 1999, the building encompasses 137 units.
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