As part of Citi’s Action for Racial Equity [1] program, the company has announced the formation of an investment program of five investment vehicles that seeks to increase investment capital allocated to Black investment managers focused on preserving workforce and affordable housing across the country.
After soliciting applications and engaging with a number of industry participants, Citi and its independent advisory council have selected five Black-led managers who have each received a $40 million allocation to invest in and manage workforce and affordable housing in partnership with L+M Development Partners [2].
- Dantes Community Partners (DCP) [3], an investment management firm focused on acquiring existing cash flowing assets with an emphasis on preserving workforce and affordable housing assets across the Mid-Atlantic region.
- Ginosko Development Company [4], a multi-state affordable housing development company with more than 19 years of experience in affordable housing development.
- Laurel Street [5], a multifamily residential development company experienced in developing and preserving high-quality, mixed-income communities for working families and seniors, with a current portfolio of more than 3,600 units throughout the Southeast.
- RailField Partners [6], a real estate investment firm with deep institutional experience that specializes in the acquisition of multifamily assets in the Mid-Atlantic, Southeast, and Texas.
- SG|T2, a joint venture between SG Companies (SG) [7] and T2 Capital Management [8] (T2), two firms that have partnered on several successful multifamily projects, currently targeting the Michigan, Ohio, Indiana, Illinois, Wisconsin, Kentucky, and Tennessee markets.
“This initiative underscores our commitment to help close the racial wealth gap and increase economic mobility in the U.S.,” said Gina Nisbeth [9], Director of Citi Community Capital. “Increasing access to capital funding with clients who have the track record, expertise and cultural competency to identify and finance additional affordable housing units is essential to support stronger, more inclusive neighborhoods.”
Citi’s program will acquire multifamily housing primarily for the benefit of low- to moderate-income individuals and communities, with a commitment to community development.
According to a Citi GPS report, if the key racial gaps for Black Americans in wages, housing, education and investment were closed today, up to an estimated $5 trillion could be added to U.S. GDP over the next five years. Citi’s Action for Racial Equity [1] initiative represents more than $1 billion in strategic initiatives to help close the racial wealth gap and increase economic mobility in the U.S. Citi’s latest investment program marks meaningful progress on the Action for Racial Equity goal of committing $550 million to support homeownership for people of color and affordable housing by minority developers through the end of 2023.