Center Creek Capital Group’s Affordable Build-to-Rent Investments
Center Creek Capital Group offers an innovative market-driven approach to affordable housing development at scale. We are acquiring and developing new communities throughout the Southeast US that will provide affordable, high-quality housing to families.
The asset class has a projected premium on returns above traditional SFR as development economics enable Center Creek to acquire whole communities often at a discount to the retail market. New constructed properties also deliver a lighter expense load from lower maintenance costs and ease of property management, boosting operating performance.
Center Creek’s BTR strategy combines its expertise in residential development, innovative land planning and thoughtful design, along with strong asset management to drive value for investors and residents.
Center Creek is raising new capital to expand its BTR portfolio and deploy the funds into acquisitions of whole BTR communities, supplemented by early-stage partnerships with builders to jointly develop sections of subdivisions or entire communities. This strategy will also amass scale in select markets by developing public-private partnerships with local municipalities, leveraging public resources to drive strong returns for creative housing development and affordable housing impact investments.
| Fund | Strategy | Investment Returns | Status |
|---|---|---|---|
| Center Creek Programmatic Joint Venture | Acquire and develop BTR communities through partnerships with builders, supplemented by creative housing development and affordable housing impact investments in 6-10 southeast markets | Projected 14-16% net IRRs to equity investors | Currently open to new institutional investors |
| Center Creek Housing Fund III | Buy, renovate, and hold affordable single-family rentals and buy and hold build-to-rent assets for cash flow and appreciation with focus on 4-8 southeast markets including Atlanta, Birmingham, Huntsville, Jacksonville, and Raleigh | Projected 11-13% net IRRs to equity investors | Currently open to new institutional and CRA investors |
| Fund |
|---|
| Center Creek Programmatic Joint Venture |
| Strategy |
| Acquire and develop BTR communities through partnerships with builders, supplemented by creative housing development and affordable housing impact investments in 6-10 southeast markets |
| Investment Returns |
| Projected 14-16% net IRRs to equity investors |
| Status |
| Currently open to new institutional investors |
| Fund |
|---|
| Center Creek Housing Fund III |
| Strategy |
| Buy, renovate, and hold affordable single-family rentals and buy and hold build-to-rent assets for cash flow and appreciation with focus on 4-8 southeast markets including Atlanta, Birmingham, Huntsville, Jacksonville, and Raleigh |
| Investment Returns |
| Projected 11-13% net IRRs to equity investors |
| Status |
| Currently open to new institutional and CRA investors |
Center Creek Capital Group’s Affordable Housing Impact Investments
Center Creek Capital Group offers an innovative market-driven and impact-focused approach to affordable real estate investment. Our scalable platform of single-family rental homes delivers strong, predictable returns to our investors, alongside transformational impact for our families.
With near-term cash flow and long-term appreciation, our investments are a hedge against rising interest rates and inflation, and present investors with substantial downside protection in recessionary environments.
Our investments preserve distressed single-family rental properties in underserved communities across the southeastern United States, rehabilitate the properties into quality homes, and commit them to delivering affordable living to our residents.
Our homes offer families the space and lifestyle they need. Our resident support programs and wraparound services – like financial literacy training, credit counseling, small business support, free internet, and our Pathway to Homeownership program – offer families the opportunities they deserve.
Our investments are building value by transforming lives.
| Fund | Strategy | Investment Returns | Status |
|---|---|---|---|
| Center Creek Housing Fund III | Buy, renovate, and hold affordable single-family rentals and buy and hold build-to-rent assets for cash flow and appreciation with focus on 4-8 southeast markets including Atlanta, Birmingham, Huntsville, Jacksonville, and Raleigh | Projected 11-13% net IRRs to equity investors | Currently open to new institutional and CRA investors |
| Center Creek Housing Fund II | Buy, renovate, and hold affordable single-family rentals for cash flow and appreciation with focus on Atlanta, Birmingham, and Tampa | Projected 11-13% net IRRs to equity investors | Closed to New Investors |
| Center Creek Housing Fund I | Buy, renovate, and hold affordable single-family rentals for cash flow and appreciation with focus on Jacksonville, FL | 10 straight quarters of 4-5% annualized dividends 14.2% net IRR to investors* |
Wound down in April 2019 |
| Fund |
|---|
| Center Creek Housing Fund III |
| Strategy |
| Buy, renovate, and hold affordable single-family rentals and buy and hold build-to-rent assets for cash flow and appreciation with focus on 4-8 southeast markets including Atlanta, Birmingham, Huntsville, Jacksonville, and Raleigh |
| Investment Returns |
| Projected 11-13% net IRRs to equity investors |
| Status |
| Currently open to new institutional and CRA investors |
| Fund |
|---|
| Center Creek Housing Fund II |
| Strategy |
| Buy, renovate, and hold affordable single-family rentals for cash flow and appreciation with focus on Atlanta, Birmingham, and Tampa |
| Investment Returns |
| Projected 11-13% net IRRs to equity investors |
| Status |
| Closed to New Investors |
| Fund |
|---|
| Center Creek Housing Fund I |
| Strategy |
| Buy, renovate, and hold affordable single-family rentals for cash flow and appreciation with focus on Jacksonville, FL |
| Investment Returns |
| 10 straight quarters of 4-5% annualized dividends 14.2% net IRR to investors* |
| Status |
| Wound down in April 2019 |
*Pro Forma returns adjusted for the fee structure of CCHFII
Current Investment Funds
Center Creek Housing Funds II and III are focused on building an affordable SFR platform at scale. CCHFII has acquired properties in markets in Georgia, Florida, and Alabama, and CCHFIII will be active in these same markets with plans to expand to additional geographies across the Southeast.
Center Creek buys houses that are affordable to working families and low-and-moderate-income (LMI) residents, a target market that is severely underserved. Single-family rental homes currently make up nearly 50% of all rental housing in the United States. While many people automatically think affordable housing means apartment buildings, Center Creek believes the crisis in affordable housing cannot be solved without focusing on SFR – the overlooked half of the market. Center Creek is committed to proving that institutionally managed single-family rentals are a critical and impactful new strategic approach to providing and preserving affordable housing.
Investments in CCHFIII qualify as Public Welfare Investments and provide CRA credit for banks.
Track Record Investment Funds
In Center Creek Housing Fund I (CCHFI) we proved that single-family rentals (SFR) can be bought, renovated, and managed effectively in an institutional manner, and delivered strong returns to our investors. CCHFI built a portfolio of SFR in Jacksonville FL, and provided a 14.2% net IRR to our investors*. Moreover, 100% of CCHFI’s rental units were affordable to residents at 80% of Area Median Income (AMI). Center Creek wound down CCHFI in April 2019.
Center Creek Capital Group’s Creative Housing Development Investments
Center Creek Capital Group offers thoughtful, high-quality infill home development that deliver strong investor returns.
Our approach reclaims vacant city land and incorporates creative, modern design to build well-constructed houses that are well suited for a range of buyers, including those purchasing a home for the first time.
Our innovative public-private partnerships support value-creation for investors, while strengthening communities.
Our investments deliver homes people love in places they love to be.
| Fund | Strategy | Investment Returns | Status |
|---|---|---|---|
| Center Creek Richmond Opportunity Fund | Build new infill homes for sale to owner-occupants | Projected 13-15%+ net IRRs to investors | Closed to new investors |
| Center Creek Richmond II | Build new infill homes and renovate distressed properties for sale to owner occupants | Projected 13-15%+ net IRRs to investors | In wind down |
| Center Creek Richmond | Renovate distressed properties and build new infill homes for sale to owner-occupants | 14.8% net IRR to investors | Wound down June 2020 |
| Fund |
|---|
| Center Creek Richmond Opportunity Fund |
| Strategy |
| Build new infill homes for sale to owner-occupants |
| Investment Returns |
| Projected 13-15%+ net IRRs to investors |
| Status |
| Closed to new investors |
| Fund |
|---|
| Center Creek Richmond II |
| Strategy |
| Build new infill homes and renovate distressed properties for sale to owner occupants |
| Investment Returns |
| Projected 13-15%+ net IRRs to investors |
| Status |
| In wind down |
| Fund |
|---|
| Center Creek Richmond |
| Strategy |
| Renovate distressed properties and build new infill homes for sale to owner-occupants |
| Investment Returns |
| 14.8% net IRR to investors |
| Status |
| Wound down June 2020 |
Current Investment Funds
Center Creek Richmond Opportunity Fund and Center Creek Richmond II (CCRII) are investment funds that drive Center Creek Homes, our development platform for renovating and building new homes. Center Creek Homes reclaims vacant land and improves highly distressed properties to provide new tax revenue for cities, high quality entry-level homes for individuals and families, and strong returns to our investors. Center Creek Homes has created an innovative public-private partnerships with the City of Richmond that can drive compelling investor returns and strengthen communities at the same time.
Track Record Investment Funds
Center Creek Richmond (CCR) was created to demonstrate proof-of-concept while building our capability to renovate distressed properties and develop new infill properties for first-time home-buyers. CCRI successfully proved the market opportunity and Center Creek’s ability to perform and is currently in wind-down mode after laying the foundation for Center Creek Richmond II.