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Primestor Targets $300 Million for the Urban Vision Fund I to Deliver Transformative Real Estate in Urban, Minority Communities

Primestor Targets $300 Million for the Urban Vision Fund I to Deliver Transformative Real Estate in Urban, Minority Communities

Minority-Led Firm Secures Up To 165mm In Capital Commitments For Urban Vision Fund

Primestor Development (“Primestor”), a leading minority-owned and minority-led urban impact real estate developer and investor, today announced that it held its first closing for The Urban Vision Fund I, anchored by an equity commitment through Belay Investment Group (“Belay”) of up to $100 million and a $25 million equity commitment from LGT Capital Partners.  Belay is a Los Angeles based women-owned and led real estate investment management firm with over $900 million of assets under management, primarily on behalf of a large California based pension plan.  LGT Capital Partners is a leading alternative investment specialist with over USD 85 billion in assets under management and more than 600 institutional clients in 43 countries.     

The Urban Vision Fund I will seek to develop and acquire transit-oriented, mixed-use real estate investment opportunities in urban, minority communities with a geographic focus on California. With these projects, Primestor will look to continue advancing its core thesis of developing and investing in real estate in urban communities characterized by density, high-growth and limited access to essential goods, services and housing.  Through its local-hire strategy, Primestor has historically created more than 14 thousand local construction and permanent jobs that are estimated to generate $1.3 billion of annual local economic activity in historically overlooked communities.

“The fulfillment of our mission to deliver transformative real estate projects to underinvested communities, hinges on our ability to develop the right partnerships at every stage of our work” said Arturo Sneider, co-founder and Chief Executive Officer of Primestor.  “We see Belay as an ideal, mission-aligned partner that supports our vision and will work with us hand-in-hand for the success of our projects and the advancement of our company.” Leandro Tyberg, co-founder, President and Chief Operating Officer of Primestor added “we are humbled and excited to complete our first closing for The Urban Vision Fund I with capital commitments from institutional and family office investors.  LGT Capital Partners is an excellent partner for Primestor given its profound appreciation for and understanding of our unique investment strategy and the growth potential in our urban markets.” 

“Throughout the due diligence process, we have been impressed with the principals and team at Primestor.  Their thoughtful and disciplined approach to real estate development and investing provides significant social and economic impact to historically overlooked Latino and Black communities while also focusing on delivering returns to institutional investors.  Primestor’s mission and their deep-rooted engagement and collaboration in the communities they serve resonates deeply with our team” said Eliza Bailey, Belay’s Chief Executive Officer, and Chief Investment Officer. 

“We are delighted to complete our investment in The Urban Vision Fund and work with Primestor on direct investing opportunities in their robust project pipeline of mixed-used real estate projects in urban markets” said Thomas Brown, Partner at LGT Capital Partners.  “Primestor’s business model aligns with our company-wide focus on ESG as a core element of our culture and investment beliefs.” The investment establishes LGT Capital Partner’s partnership with Primestor and opens up other investment opportunities consistent with its long-term focus on Environmental, Social and Governance considerations.

Primestor has invested more than $1 billion to date in urban, mixed-use real estate and The Urban Vision Fund I serves as a platform for the continued expansion of its unique community-oriented business model centered on local economic empowerment of underinvested, minority neighborhoods via local job generation, local sales tax generation and infrastructure improvements.  The company’s long standing community engagement is further underscored by its partnership with local governments, community organizations and commercial tenants, delivering more than 150 events per year at its properties, including book fairs, food drives, art exhibits, blood drives as well as music and dance performances highlighting local talent.

About Primestor Founded in 1991,Primestor acquires, develops, invests and manages transformative, community-oriented real estate projects in urban areas, predominantly in the Western United States.  The company is headquartered in Los Angeles, California and has a 30-year history of supporting local economic development in underinvested minority communities and delivering financial returns to its investors.  Primestor is minority-founded, owned and led and sees its diversity as core to its mission and success.  For more information, visit Primestor.com.

About Belay Investment Group Belay Investment Group, LLC is a real estate investment management firm that pursues equity and debt investment opportunities across all property types, primarily middle-market infill properties in urban/suburban transit hub markets, on behalf of its institutional investors. Belay implements its investment strategies through long-term programmatic relationships with high caliber, local operating partners and sector specialists. The firm has earned a reputation in the industry for supporting the growth and development of operators (including diverse firms), beyond providing investment capital. Visit www.belayinvestmentgroup.com for more information.

About LGT Capital Partners LGT Capital Partners is a leading alternative investment specialist with over USD 85 billion in assets under management and more than 600 institutional clients in 43 countries. An international team of over 700 professionals is responsible for managing a wide range of investment programs focusing on private markets, liquid alternatives, and multi-asset class solutions. Headquartered in Pfaeffikon (SZ), Switzerland, the Firm has offices in New York, San Francisco, Dublin, London, Paris, Vaduz, Frankfurt am Main, Luxembourg, Dubai, Beijing, Hong Kong, Tokyo, and Sydney.

Neither LGT Capital Partners nor Belay has received or provided any cash or any non-cash compensation in exchange for the statements made in this press release. As a result of their investment in The Urban Vision Fund I, both Belay and LGT Capital Partners, and their respective personnel, have an incentive to make positive statements about Primestor and The Urban Vision Fund I.

Belay Announces a Favorable Sale of Dallas Cold Storage Facility

Belay Announces a Favorable Sale of Dallas Cold Storage Facility

Belay Investment Group, along with its partner Birtcher Anderson & Davis, announced the sale of a 170,465 square-foot two building project, including a Cooler/Freezer building located at 1101 and 1115 E 23rd Street, Fort Worth, TX for $17,800,000. The property was centrally positioned in a supply-constrained, high-demand area, providing strategic access to Fort Worth businesses and was comprised of a vacant Cooler/Freezer Building that provided multiple options for the requirements of a variety of occupants, and a fully-leased freestanding 6,220 square foot building.    

Belay Investment Group and Birtcher Anderson & Davis engaged the local offices of JLL and CBRE to market the property for both the potential lease-up and/or sale of the property. “The JLL and CBRE teams were instrumental in enabling us to exit the property earlier than we underwrote by communicating to prospective buyers the repositioning plan we had developed, which clearly laid out the great potential for the vacant building and the site” said Daniel Karcher, Birtcher Anderson & Davis  President.

Stephen Bailey, Cole Sutter and Wells Waller of JLL teamed up with CBRE’s industrial Food Facility experts Kevin Kelly and David Sours in identifying a user for the vacant facility, Dallas-based Standard Meat Co., who purchased the entire site including the adjacent occupied building.

“The Birtcher team has proven to be a valuable partner and true sector specialist, and the disposition of this cold storage asset is just one example of their adept execution of asset management at our Dallas-based industrial portfolios” said Eliza Bailey, Chief Executive Officer and Chief Investment Officer at Belay. “We are pleased with our favorable exit at E 23rd Street and believe it is a testament to the durable value of well-located, highly functional industrial product” said Jake Loughridge, Managing Director at Belay. “We’re eager to seize on this momentum as we continue to work alongside Birtcher at our remaining Dallas Fort Worth assets.”

The 166,015 Sq. ft. 1101 E 23rd Street building was recently vacated by a Cold Storage Logistics provider who was in occupancy for twelve (12) years, and included a large secure yard, 34 dock-high doors, 20 trailer parking stalls and private offices.

About Birtcher Anderson & Davis

Birtcher Anderson & Davis (“BA&D”) is a California based, privately-owned real estate investment, development, and property management firm located in San Juan Capistrano, CA with additional satellite locations in CA, NV, and AZ. BA&D is a vertically integrated real estate operating company focused on acquiring value-add, middle-market, multi-tenant warehouse and light industrial properties in high growth U.S. markets. For more information visit: www.birtcherandersondavis.com

Sam Khatib Joins Belay Investment Group as Vice President

Sam Khatib Joins Belay Investment Group as Vice President

Belay Investment Group is pleased to announce the addition of Sam Khatib to its Investment Team in the role of Vice President of Capital Expansion and Investment. Mr. Khatib brings to the position an institutional background in investment management, investor relations, and capital markets. In his new role, Sam will be heavily involved in Belay’s marketing and capital raising efforts and will also be working on the investment management side handling operating partner relationships.

“We are excited to have Sam join Belay. His understanding of global capital markets and institutional experience are anchored in real estate fundamentals. This unique combination of capabilities makes Sam an invaluable addition and a natural fit for our Investment Team” said Eliza Bailey, Chief Executive Officer and Chief Investment Officer of Belay. “Sam joins our team at an exciting point in Belay’s development, and his arrival will prove to be particularly timely as he brings his multifaceted real estate background and unique perspective to this role” said Amy Ko, Belay’s Chief Operating Officer.

Mr. Khatib has been actively involved in the real estate industry for over nine years. Prior to joining Belay, Mr. Khatib was an Investment Manager at Overlook Capital Partners, LLC where he was involved in  providing capital solutions for complex commercial real estate transactions, utilizing proprietary capital and strategic partner relationships to allocate capital into debt and equity opportunities. Prior to Overlook, Mr. Khatib was a Vice President at CBRE Capital Advisors in New York City. During his tenure, Mr. Khatib was engaged in a number of institutional capital raising engagements and investment advisory mandates involving transactions across various asset classes and capital structures. Along with US-based capital, Mr. Khatib focused on cross-border capital and promoted US Real Estate investment interests among Middle Eastern and Asian based capital. Mr. Khatib started his real estate career as an Investment Director working on acquisitions and asset management for Atlas Residential, a Chicago-based multifamily owner operator with over $3.3Bn in AUM. Additionally, Mr. Khatib held corporate banking and private equity roles overseas.

Mr. Khatib received a Bachelor’s in Economics and History from the American University in Cairo (AUC) and is a CFA® charterholder.

Eagle Property Capital and Belay Investment Group Announce Disposition of Dallas-Fort Worth Multifamily Asset

Eagle Property Capital and Belay Investment Group Announce Disposition of Dallas-Fort Worth Multifamily Asset

Eagle Property Capital and Belay Investment Group close on the sale of Woodchase & Clarendon, an 18-structure, 266-unit community which they acquired in 2016

Eagle Property Capital Investments, LLC (“EPC”), a vertically integrated real estate investment manager focused on the value-add multifamily space, announced the disposition of Woodchase & Clarendon, a 266-unit apartment community located in Irving, northwest of Dallas-Fort Worth, Texas.  EPC Multifamily Partners III, LLC (“Fund III”), a private investment vehicle raised and managed by EPC, acquired the asset in partnership with Belay Investment Group (“Belay”) in June 2016. It sold for an undisclosed price to Lion Real Estate Group.

“The repositioning strategy that we implemented had a direct and positive impact on the property’s profitability, which allowed us to realize a significant capital gain on the investment through its disposition,” said Gerardo Mahuad, Managing Principal at Eagle Property Capital.  “Although current market conditions pose challenges, the disposition of this asset demonstrates the success and effectiveness of our value-add strategy and capital improvement program.  We will continue to execute on our long-term investment strategy by identifying attractive value add investments.”

“We are excited to have seen another investment through to fruition via our partnership with EPC, and pleased not only to have achieved results exceeding the business plan, but to have played a role in contributing to the supply of quality attainable housing in the Dallas-Fort Worth Market” said Eliza Bailey, Managing Principal, CEO & CIO of Belay Investment Group.

Woodchase & Clarendon, located at 4050 & 3800 N. Beltline Rd. in Irving, was built between 1977 and 1983.  EPC’s renovation strategy included upgrading the apartment interiors, existing common areas and amenities, adding new amenities and services as well as employing water and energy conservation programs. 

About Eagle Property Capital Investments

Eagle Property Capital Investments is a vertically integrated real estate investment manager pursuing valueadd investment strategies through the acquisition, reposition, and management of multifamily apartment properties in Florida and Texas. Since 2011, EPC and its affiliates have acquired 39 multifamily residential properties containing over 9,300 apartment units. To learn more about EPC, visit eaglepropertycapital.com.

Belay Investment Group Appoints Eliza Bailey Chief Executive Officer and Chief Investment Officer

Belay Investment Group Appoints Eliza Bailey Chief Executive Officer and Chief Investment Officer

Amy Ko named Chief Operating Officer
Barry Chase named Executive Chairman

LOS ANGELES, CA (June 21, 2022) – Belay Investment Group (“Belay”), a majority woman-owned real estate investment management firm that pursues equity and debt investment opportunities primarily in middle-market infill properties on behalf of its institutional investors, announced today the appointment of Eliza Bailey, Managing Principal, as Chief Executive Officer and Chief Investment Officer of the firm, and Amy Ko, Managing Principal, as Chief Operating Officer. Barry Chase, who has stepped down from his role as CEO, is being named Executive Chairman.

Eliza Bailey, with 26 years in the industry, has built and led global platforms that have invested over $2 billion in capital in both debt and equity real estate strategies. As a founding partner of Belay, she has played a pivotal role in the daily decision making and leadership of the firm. Amy Ko, with 27 years in the industry, has led corporate finance for a multibillion-dollar public REIT and led the merger of finance and operations of two publicly traded real estate companies. As a founding partner of Belay, she has elevated Belay’s operations through establishing investment management best practices.

Belay has experienced incredible growth in recent years, during which it has more than doubled its team and tripled its AUM to over $800 million in total. Over the last 18 months, Belay’s investment team has closed 81 investments and has formed five new and expanded four existing operating partner relationships. This investment activity includes increased commitments to industrial and multifamily investments, and an entry into the debt market. Belay expects to make significant investments over the coming year during which it will remain committed to fostering diversity, equity and inclusion in commercial real estate, a core value of the firm.

“I am excited to continue to lead Belay as CEO and CIO. We have built an excellent reputation and world class team, which has set us up to build on our success with a focus on growing operating partner relationships, executing on investments and increasing AUM,” said Ms. Bailey.

“Belay’s operations have never been stronger. We have built tremendous momentum and as I officially assume the role of COO, I look forward to maintaining Belay’s best-in-class operational capabilities,” said Ms. Ko.

“It has been a tremendous honor to serve as CEO. I am incredibly proud of what we have built at Belay. Eliza, Amy, and the team are well positioned to expand the Belay platform for the future. I look forward to supporting Belay in its continued evolution in my new role as Executive Chairman,” said Mr. Chase.

Marcus van Leeuwen Joins Belay Investment Group as Vice President

Marcus van Leeuwen Joins Belay Investment Group as Vice President

Belay Investment Group is pleased to announce the addition of Marcus van Leeuwen to its Investment Team as a Vice President. Mr. van Leeuwen brings to the position his extensive institutional experience in both investment management and development. In his new role, Marcus will play a key role in the daily execution of acquisitions, asset management, and working within Belay’s operating partner relationships.

“We are excited to have Marcus joining the Belay team. His unique blend of experience managing multi-stage developments, underwriting new opportunities, and balancing the nuanced demands of multiple stakeholders over long periods of time has provided Marcus with a skillset that is well-tailored to the execution of the Belay’s investment strategy” said Eliza Bailey, Managing Principal at Belay. “We believe that Marcus’ project management experience, coupled with his capacity for thoughtful and detailed analysis will serve to bolster and enhance the capability of our senior team, while his strong interpersonal skills and collaborative nature position Marcus as a natural fit within the Belay culture,” said Barry Chase, Managing Principal at Belay.

Mr. van Leeuwen is a 10-year industry veteran who joins Belay from Stockbridge Capital Group where he most recently served as a Vice President of Investment within the firm’s Opportunistic and Platform Business. During his tenure at Stockbridge, Mr. van Leeuwen was involved in the underwriting and closing of over $1.2 billion of transactions and was primarily responsible for the management of large, mixed-use, master-planned development projects, including the redevelopment of San Francisco’s Treasure Island. Prior to Stockbridge, Mr. van Leeuwen served as an analyst at global management consulting firm Booz Allen Hamilton, during which time he developed and implemented audit procedures for the Space and Naval Warfare Systems Command, a federal agency within the United States Navy.

Marcus holds a Bachelor of Science in Accounting from San Diego State University and is a Certified Public Accountant (inactive).

Standard Real Estate Investments and Belay Investment Group Announce Second Strategic Investment with NYC Multi-Use Development

Standard Real Estate Investments and Belay Investment Group Announce Second Strategic Investment with NYC Multi-Use Development

tandard Real Estate Investments, LP (Standard), a minority-owned real estate private equity firm focused on providing joint venture equity to developers, and Belay Investment Group, LLC (Belay) today announced a second strategic investment. Standard and Belay closed an equity investment in a mixed-use development project located at 1333 Broadway in the Bushwick section of Brooklyn, NY. The total project cost is $76 million.

“After our equity investment in a 244-unit multifamily development project located at 75 West 18th Street in Downtown Indianapolis, the Brooklyn project was a perfect fit for Standard and Belay,” said Robert Jue, Chief Executive Officer of Standard. “Both investments speak to our vision of how market-rate institutional capital can be used to affect positive social change and create value for communities.”

“This is now the second deal Belay has closed with Standard, and through our partnership, we’ve benefitted from the Standard team’s aptitude finding compelling deals in great neighborhoods” said Cameron Chase, VP of Investment at Belay Investment Group. “We are excited to be involved in a dynamic mixed-use project like 1333 Broadway that supports the supply of attainable housing in an historic neighborhood like Bushwick.”

1333 Broadway is situated at the doorstep of Bushwick’s Gates Avenue Station, providing immediate access to the J and Z trains with transportation to Williamsburg and Downtown Manhattan. The building will feature prime, ground floor retail and a three-story commercial component, already pre-leased to Empire Rehearsal Studios, in addition to 15 stories of apartment units boasting unobstructed city views; 30 percent of the housing will be affordable and 70 percent will be market-rate. Units will feature a blend of studio, one-, two- and three-bedroom units, ideal for residents that work from home or also want the ability to quickly commute into Manhattan or other parts of Brooklyn. Amenities will include a gym, a bicycle room, package room and 50 parking spaces located below grade and on the first floor.

Belay is an investment manager focused on the deployment of institutional capital through strategic partnerships with emerging managers and market sector specialists across a variety of value-add strategies and property types. Driven by its strong fiduciary culture and an emphasis on mentorship within its operating partnerships, Belay harnesses these relationships in the sourcing of opportunities and execution of strategic sectors and market-specific strategies that benefit from demographic trends and sustainable economic drivers. With an investment thesis currently focused on attainable multifamily and workforce housing, coastal infill industrial, debt, and specialty asset classes, Belay often invests with an eye towards fostering both sustainability and diversity, equity, and inclusion in commercial real estate where it benefits the real estate and end users, with 58% of its Venture III allocation thus far deployed to MWBE (minority/women-owned business enterprises) operating partners.

About Standard Real Estate Investments
Founded by Robert Jue and Jerome Nichols, Standard Real Estate Investments (Standard) is a minority-owned and controlled real estate private equity firm that manages capital on behalf of institutions and allocates joint venture equity to developers. The firm operates nationally across property sectors and risk profiles with an initial focus on the development of market rate attainable housing while also accelerating positive socio-environmental impact. The leadership team at Standard has invested in assets valued at $7 billion in total. For more information, visit standardrei.com.

Belay Investment Group Receives Additional Capital Allocation of $350M

Belay Investment Group (“Belay”) announced today that they have received an additional capital allocation of $350 million from the California State Teachers’ Retirement System (“CalSTRS”). The allocation comes as a follow-on to the $250 million Belay Venture III commitment and brings the overall capital commitment to $900 million of equity. The increased allocation will help position the firm in both the expansion of existing operator partner relationships, as well as in the initiation of new partnerships.

The increased allocation further supports the momentum generated through Belay’s recent investment activity, having deployed 80% of their initial allocation to date. The Belay team made investments through six operating partner relationships in 2021, including two reinvestments with an existing Fund II operator, and the remainder through newly-formed joint ventures. Belay made its first foray into the debt market funding short term bridge, new construction, and construction completion loans through an investment in a boutique multifamily lender. Additionally, Belay continued building upon its long-held commitment to fostering diversity, equity, and inclusion in commercial real estate with 58% of its Venture III allocation thus far deployed to MWBE (minority/women-owned business enterprises) operating partners.

“CalSTRS has worked very closely with Belay in implementing many facets of our Real Estate program’s investment objectives, and the relationship has served as a great example of CalSTRS’ Collaborative Model at work,” said Mike DiRe, Director of Real Estate at CalSTRS. “This new allocation represents CalSTRS’ continued confidence in Belay, which also has been demonstrated by the recent expansion of our relationship to include select advisory work on special projects in addition to Belay’s traditional investment management role.”

“2021 was a breakthrough year in our relationship with CalSTRS,” said Barry Chase, Belay’s Managing Principal. “In addition to significantly increasing our investment capital, we began providing wide ranging advisory services, which has allowed Belay to function as an outsourced resource to CalSTRS. We are proud to have earned the trust of CalSTRS and we are excited to have the opportunity to work more closely with members of their team.” “Additionally, our expanded relationship with CalSTRS enables us flexibility and access, both cornerstones of Belay’s emerging-manager-focused directive with CalSTRS,” said Eliza Bailey, Belay’s Managing Principal. “In today’s highly competitive environment, having the flexibility to invest in various product types, and up-and-down the capital stack, has enabled us to be more nimble investors, meeting the market as it continues to evolve.”

With this next allocation, Belay will maintain its focus on a broad range of strategies, markets, and property types through both equity and debt commitments with emerging managers in various stages of their development predominantly through Belay’s established programmatic joint venture structures.

Arc Capital Partners Completes East Austin’s “Holly Commons“

Arc Capital Partners Completes East Austin’s “Holly Commons“

Acquisition of 8,500 sf commercial office building and surface parking lot complements extensive capital program to complete transformation of 67,000 square foot mixed-use office and retail campus.

Arc Capital Partners (Arc) announced today that it has rebranded 2400 E Cesar Chavez to “Holly Commons,” a 67,000 square foot commercial property located in the highly sought-after Holly neighborhood of East Austin. The rebranding follows the acquisition and integration of an adjacent 8,500 commercial office building and surface parking lot and an extensive capital program targeting the property’s interiors, common areas, parking lot, and exterior street presence along E Cesar Chavez Street. Information about Holly Commons can be found at HollyCommonsATX.com.

Since the acquisition of the initial parcels in December 2019, Arc, in partnership with Belay Investment Group, has made multiple investments to upgrade the property and maintain the strong tenant base. The investments are aligned with renovation programs Arc has undertaken to improve properties in its portfolio that target urban mixed-use neighborhoods. Holly Commons’ 1,000 – 4,000 square foot suites are especially popular among young professionals seeking unique, open-air office space with direct suite access, and immediate access to onsite retailers including Juniper, Blue Owl Brewing, and Shed Barber. Holly Commons is also just a short bike, drive, or rideshare from Downtown Austin and several major transit routes.

“We have been investing in Austin, TX for the past 20 years and we take great pride in finding historically overlooked and mis-perceived neighborhoods such as East Austin,” said Neville Rhone Jr., Co-Founder and Managing Partner of Arc. “The repositioning of Holly Commons validates our strategy of supporting urban mixed-use neighborhoods while delivering an enhanced experience for our tenants and their guests.”

“Holly Commons is a one-of-a-kind mixed-use environment that provides creative office and walkable amenities for a multicultural cross-section of young people,” said Quincy Allen, Co-Founder and Managing Partner of Arc. “Our property upgrades resulted in incredible tenant retention despite initial pandemic-related setbacks, and we have only seen this momentum accelerate since.”

“Arc and Belay pursued this investment opportunity in response to the ‘path of growth story’ we saw developing in the East Austin area,” said Jake Loughridge, Senior Vice President of Investment at Belay Investment Group. “With the recent completion of the capital improvement plan and repositioning of Holly Commons, the property is well positioned to capture the robust office and retail demand from tenants seeking to locate in this specific neighborhood.”

Leasing for Holly Commons is represented by Doug Rauls and Will Nelson of Colliers.

About Arc Capital Partners
Arc Capital Partners (Arc) is a minority-owned, real estate owner-investor dedicated to redefining urban mixed-use environments. In partnership with large institutional investors, Arc is currently pursuing over $1 billion of urban real estate located primarily in California and Texas. Through the lens of diversity and inclusion, Arc targets middle-market investments ($40 million to $100 million) that typically exhibit value-add and opportunistic business plans. For more information, please see arccapitalpartners.com.

SoLa Impact’s “Black Impact Fund” anchored by $50M Commitment from CalSTRS

SoLa Impact’s “Black Impact Fund” anchored by $50M Commitment from CalSTRS

SoLa Impact has raised over $250 million in its fourth fund and aims to scale up affordable and workforce housing development in California’s Black and brown communities. CalSTRS’ commitment through Belay Investment Group represents the first real estate investment by the CalSTRS Sustainable Investment and Stewardship Strategies Team.

SoLa Impact, a leading minority-led real estate fund focused on affordable and workforce housing in California’s Black and brown communities, today announced that the California State Teachers’ Retirement System (“CalSTRS”), the world’s largest educator-only pension fund, via their joint venture with Belay Investment Group, has anchored SoLa’s second close with a $50 million equity commitment into its “Black Impact Fund.” CalSTRS’ investment combines commitments from the pension fund’s Real Estate and Sustainable Investment & Stewardship Strategies (“SISS”) units thorough its partnership with Belay Investment Group, CalSTRS’ emerging manager conduit. With the investment, CalSTRS joins other leading institutional investors such as PayPal Holdings, Equitable Insurance, the Skoll Foundation, Ally Bank, Potenza Capital, Pacific Premier Bank, Adirondack Capital, eBay’s Jeff Skoll and senior partners of some of the nation’s premier private equity firms that have collectively invested over $250 million in SoLa’s Black Impact Fund. The fund plans to formally close once it reaches its $300 million target.

“We are honored to have CalSTRS anchor our second close with such a significant commitment,” said Martin Muoto, Chief Executive Officer of SoLa Impact. “We looked for a mission-aligned investor that operates in a true partnership with emerging managers, has an appreciation for the diversity of our team, and has deep experience in institutional investing. CalSTRS and Belay are a perfect fit for SoLa Impact.”

“Our mission is to provide a secure retirement for California’s public educators and beneficiaries,” said Kirsty Jenkinson, CalSTRS’ SISS investment director. “Our dedicated portfolio seeks to achieve superior financial returns while creating demonstrable social and environmental outcomes. The investment with SoLa Impact is our first real estate investment within SISS and aligns with our goals. We are delighted to work with the SoLa team, our colleagues in the CalSTRS Real Estate team and our partners at Belay to expand affordable and workforce housing in California.”

“After extensive due diligence, Belay has been impressed with the senior team at SoLa Impact, their thoughtful, disciplined approach to building their platform, and with the positive change they continue to affect in Los Angeles through their affordable housing investment strategy and related social programming. While their track record speaks for itself, we believe that SoLa is an organization that helps prove that ‘Doing well by Doing good’ is a viable business model. And Belay is particularly aligned with their commitment to investing in historically overlooked Black and brown communities, as well as their deep engagement with the communities in which they invest,” said Eliza Bailey, Belay’s Managing Principal in charge of Investment Team activity.

To date, SoLa Impact has invested in the development of over 3,000 affordable and workforce housing units located primarily in Los Angeles. SoLa’s strategy includes the renovation of existing multifamily properties, as well as new ground-up construction projects in Black and brown communities. SoLa takes a somewhat unique approach to investing in market rate workforce housing by embracing Section 8 vouchers and going beyond housing, using SoLa’s social programs offered through their affiliated non-profit, the SoLa I Can Foundation, that provide practical solutions for ending homelessness by equipping tenants with vocational training, financial counseling, scholarships, and pathways to self-sufficiency.

“Over the last several decades, demand for affordable housing in California has far outpaced supply, and SoLa’s strategy directly addresses this issue,” said Julie Donegan, a portfolio manager for CalSTRS’ Real Estate team. “SoLa’s replicable development model and strong in-house capabilities enable them to deliver 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. SoLa’s model has demonstrated that a high-caliber operator with a disciplined investing approach, combined with intentional social impacts, can deliver returns that benefit investors and community members alike. We look forward to working with SoLa through our long-standing relationship with Belay, our dedicated partner for emerging manager private equity real estate investments.”

“If we’re going to end homelessness and build a more equitable city, we need to partner across sectors and bring all of L.A.’s creativity and innovation to bear,” said Los Angeles Mayor Eric Garcetti. “SoLa Impact is poised to double down on the important work it’s doing to both build much-needed affordable housing in underserved communities and provide Angelenos with the tools they need to transform their lives.”

About SoLa Impact
SoLa Impact is a family of real estate funds with a double bottom line strategy focused on preserving, rehabbing, and building high-quality affordable housing in Black and brown communities. SoLa’s proven track record leverages data-driven social impact strategies to deliver superior financial returns. SoLa Impact’s fourth fund, the Black Impact Fund, is part of an initiative to invest over $1 billion in affordable and workforce housing and related social impact strategies across urban cities in California.

SoLa Impact was ranked as the 7th fastest-growing minority-led private company on Inc. Magazine’s 500 list and was also recognized by Forbes Magazine and the Sorenson Impact Center as the leading urban Opportunity Zone fund in the country. SoLa Impact’s funds have attracted a number of leading investors seeking yield while also remaining committed to Diversity & Inclusion and delivering impact through ESG initiatives.

About CalSTRS
CalSTRS provides a secure retirement to more than 980,000 members and beneficiaries whose CalSTRS-covered service is not eligible for Social Security participation. On average, members who retired in 2020–21 had 25 years of service and a monthly benefit of $4,813. Established in 1913, CalSTRS is the largest educator-only pension fund in the world with $327.6 billion in assets under management as of December 31, 2021. CalSTRS demonstrates its strong commitment to long-term corporate sustainability principles in its annual Sustainability Report. For more information, visit CalSTRS.com.