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Bridge Investment Group closed on a $1.74B fund devoted to workforce housing, with commitments from institutional investors, along with high net worth individuals and family offices, according to PERE, which calls it the largest fund ever raised for that property subtype.
In fact, the new fund is well over twice the size of the previous record holder, Avanath Capital Management's Affordable Housing IV, which had $760M in commitments in 2020.
The new fund, Bridge Workforce and Affordable Housing Fund II, is also much larger than the company's first fund devoted to workforce housing, which came in at $619M, PERE reports, though that itself was a record-breaking amount when it closed in 2019.
The fund will invest in new development, but also redevelopment.
“There's older, out-of-fashion hotel assets ... that already have a lot of the plumbing and kitchens in place that are ripe for conversion,” Bridge Workforce and Affordable Housing Senior Managing Director of Acquisitions Rachel Diller told PERE.
Bridge Investment Group is a diversified real estate investment manager, with about $42B of assets under management. Salt Lake City-based Bridge focuses on apartments, office, logistics properties, net lease and real estate-backed credit.
Other investors have jumped into the hotel-to-residence conversion game, some of which involves affordable housing. Last year, TF Management Group ramped up its efforts to convert hotels to multifamily through its Tempo Growth Fund, whose fund target was $25M.
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