Cornerstone Real Estate Advisers, the real estate investment platform of Massachusetts Mutual Life Insurance, has held a final closing on $106 million in equity for its latest fund dedicated to the preservation of affordable housing in the US. Commitments came from an undisclosed number of institutional investors, most of which were domestic.
Co-sponsored by the National Affordable Housing Trust (NAHT), the Cornerstone-NAHT Enhanced Preservation Fund III is earmarked for the rehabilitation of 17 multifamily properties for lower-income renters, primarily the elderly. The properties, most with operating histories of nearly 100 percent occupancy, are located across the country. One example is Torringford West, a 79-unit senior complex in Torrington, Connecticut.
Fund III is the third affordable housing fund Cornerstone has launched in partnership with NAHT, a non-profit specialized financial intermediary and consulting firm dedicated to the development and preservation of affordable housing. Together with Fund I and II, more than $240 million in equity has been raised to preserve affordable housing at 36 properties with 3,615 rental units.
“With our range of expertise and capabilities – including equity investing, permanent lending and tax credit syndication – we're able to bring a high level of creativity to the affordable housing marketplace,” said Don Phelan, vice president in Cornerstone's affordable housing group, in a statement. “While generating a return for our investors is always the primary focus, our investments in affordable housing also serve a greater public good, which is something we value highly at Cornerstone.”
Founded in 1994 to manage MassMutual’s equity real estate investments, Cornerstone has grown to become one of the world’s largest real estate investment managers, with more than $42 billion in assets under management.