New Commons Development New Market Funds Rental Housing Fund I
Product Details
Product Name: New Market Funds Rental Housing Fund I
Overview: The goal of NMF Rental Housing Fund I is to bring long-term affordable multi-family rental housing inventory to Canadian cities. There are three main points that distinguish NMF from other Canadian funds that are merely meeting market demand for housing: first, NMF seeks to fill community needs solely by working with community-based housing providers-- non-profits and co-ops; second, NMF seeks to address the affordability gap by insuring that the rental housing it provides is affordable to households earning, on average, 80% or less of the area median income; third, to best preserve long-term affordability NMF will only exit to community-based ownership - not for profits, co-ops or government. The Fund provides post-construction equity as a means to secure construction financing. Structured exits through a sale to the non-profit partner on each investment are negotiated on the front-end, increasing certainty on returns, while mitigating risk., The Fund is expected earn to risk-adjusted market rate returns. Investments in properties are made post-construction and are protected by priority of return and capital. The Fund targets a quarterly cash re-distribution of capital (4% annualized) as well as a lump sum upon exit. The target total investment return is 6% IRR net of fees.
Issues Focused: Sustainable Cities and Communities
Asset Class: Real Estate
Geography: Quebec, Ontario, Alberta, British Columbia
Impact Measurement
IRIS 4.0 Social Impact Objectives: Affordable Housing, Community Development
IRIS 4.0 Environmental Impact Objectives: Energy and Fuel Efficiency, Sustainable Land Use
IRIS 4.0 Targets: Children (<10 years old), Adolescents (10-18 years old), Adults (>18 years old), Elderly/older adults, Persons with Disabilities, Minority/previously excluded populations, Women, Pregnant Women, Other At-Risk populations
Impact Evidence Type: Impact Data: Can provide data that explicitly informs assessment of additionality and/or cost-effectiveness
New Commons Development

Last updated by New Commons Development on 05 Nov 17:29

Investment Details
Legal Structure: Limited Partnership
Product Stage: Not Specified
Part of Series: First
Investment Availability: Closed
Minimum Investment: $500,000
Investor Eligibility: Institutional Investors, Foundations/Endowments, Accredited Investors
Assets Under Management: $20M < AUM < $50M
Average Management Fees %:
Average Performance Expectations: 4% ≤ Expectations ≤ 8%
Performance To Date: At Expectations