Cornerstone Closes Third Affordable Housing Fund, Raising $106 Million

Cornerstone's third equity fund brings total affordable housing transactions to nearly $3 billion since 1995

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Cornerstone Real Estate Advisers LLC

Nov 13, 2013, 09:00 ET

HARTFORD, Conn., Nov. 13, 2013 /PRNewswire/ -- Cornerstone Real Estate Advisers LLC, one of the largest global real estate investment managers with over $42 billion[1] in assets under management, today announced it closed a new $106 million equity fund dedicated to the preservation of affordable housing in the United States.

The Cornerstone-NAHT Enhanced Preservation Fund III LLC ("Fund III"), co-sponsored by the National Affordable Housing Trust ("NAHT"), a non-profit specialized financial intermediary, is earmarked for the rehabilitation of 17 multi-family properties for lower-income, mostly elderly, renters. The properties, most with operating histories of nearly 100 percent occupancy, are located across the country.

Fund III is the third affordable housing equity fund Cornerstone has launched with NAHT. Together with Cornerstone-NAHT Enhanced Preservation Fund I and II, more than $240 million 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. "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."

Since 1995, Cornerstone has closed nearly $3 billion of affordable housing transactions involving both debt and equity.[2] As a permanent lender, Cornerstone provides immediate and fixed-rate forward commitments for both taxable loans and tax exempt private placements. As an equity investor, Cornerstone has programs for proprietary fund investing, combined debt and equity structures, and direct investing. As a Fund Manager, Cornerstone has a subordination structure that allows for varying risk-return positions for different investor classes.

About Cornerstone Real Estate Advisers LLC

Cornerstone Real Estate Advisers LLC, with subsidiary and affiliate offices in the U.S., UK, Europe, and Asia, is one of the largest global real estate investment managers. It provides core and value-added investment and advisory services, including a comprehensive suite of private and public real estate debt, equity and securities expertise and services, to institutional and other qualified investors around the globe. Cornerstone is a member of the MassMutual Financial Group. Visit www.cornerstoneadvisers.com.

[1] Includes Cornerstone and its subsidiaries

[2] Cornerstone integrated Babson Capital Management LLC's Real Estate Finance Group into its operations in 2010. Affordable Housing transactions prior to that date, while conducted by the Finance Group, occurred at an affiliated firm.

SOURCE Cornerstone Real Estate Advisers LLC