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Peebles Corporation launches $500M fund for emerging minority and women-led developments

United States Architecture News - Jul 02, 2019 - 06:02   11327 views

Peebles Corporation launches $500M fund for emerging minority and women-led developments

The Peebles Corporation, a real estate company based in New York City, Miami, and Washington D.C, is launching a $500 million investment fund for emerging minorities and women developers, according to an article by The Real Deal

Announced by Peebles Corporation founder Don Peebles at The Real Deal’s residential real estate showcase held at the London Hotel in West Hollywood in June, he stated that the new funding will be open to new developments in New York, Los Angeles, South Florida, Boston, Washington, D.C., Philadelphia, and Charlotte with budgets between $10 and $70 million.

According to The Real Deal, Peebles stated that "access to capital has been the biggest challenge, I looked at how to address that for a number of years. No one in the country is doing this on a national level."

Peebles also added: The Peebles Corporation will look at ways to support the emerging developers. Through co-developing or partnerships, he hopes the fund will "help mitigate risk and help them grow quicker."

Peebles Corporation launches $500M fund for emerging minority and women-led developments

The Handel Architects-designed Angels Landing project in Los Angeles, which is partially financed by Peebles Corporation. Image courtesy of Peebles Corporation

The base of funding majorly will focus on urban infill projects developed in these countries. The funding will also search for a variety of commercial and multifamily projects, with an emphasis on projects that offer affordable housing.

"The idea is to create this business model that shows that investing in emerging developers and investing in diversity will result in higher returns with less risk," Peebles added.

Peebles also added that he is having discussions with global banks and other financial institutions to invest in the fund, though he declined to identify them. He anticipates the fund will consist of a small group of investors. The firm aims to reach 60 deals in the fund, Peebles said. Peebles anticipates there will be similar funds in the future. 

"It’s a very positive thing to have the developments that are taking place in communities of color, to have the projects be developed by people of color," Peebles added. "We see this as a win-win and an untapped market."

Top image: The Handel Architects-designed Angels Landing project in Los Angeles, which is partially financed by Peebles Corporation. Image courtesy of Peebles Corporation.

> via The Real Deal