In brief: Center Creek holds $30m first close for housing fund

The firm is offering investors access to the single-family rental market and seeks to provide residents with a pathway to homeownership.

Center Creek Capital Group has raised $30 million to date for an affordable housing fund that seeks to provide underserved communities with homeownership and improved internet access.

The US firm announced the initial closing of Center Creek Housing Fund III, which is targeting investments in single-family rental properties to renovate houses and “create durable, comfortable and energy-efficient homes for residents”, according to a statement from Center Creek. The firm is aiming to raise around $150 million to deploy a strategy that “seeks to provide near-term cashflows along with value appreciation over time, as well as a natural hedge against inflation and rising interest rates”.

Three things worth noting:

1) Community impact – Supported by a “social impact advisory board”, Center Creek is offering a “Pathway 2 Homeownership” programme to help low-to-moderate-income families structure loans to take ownership of their rental properties. The firm is also providing “Center Creek Internet Connections” to increase in-home broadband and computer access.

2) Anchor commitments – Early fund backers include Capricorn Investment Group, Truist Bank, the Regions Foundation and family offices. Center Creek noted that banks may qualify for credits under the Community Reinvestment Act by participating in CCHFIII investments.

3) Growing footprint – Tapping into strong market demand for single-family rentals and a growing need for affordable housing, Center Creek is planning to expand its portfolio’s footprint across the southeastern US.