The Community Preservation Corporation (CPC), a nonprofit and mission-driven multifamily finance company, and Shift Capital, an impact real estate investor based in Philadelphia, announced that CPC has made a $5 million equity investment in Shift’s Catalyst Fund, which supports underrepresented impact real estate developers who are investing in economic development and affordable housing in underserved neighborhoods across the country.
“Catalytic. That’s how I’d describe our partnership with CPC. That’s how I’d describe their investment in Shift’s Catalyst Fund,” said Nancy Gephart, Shift Capital partner and president of Capital Markets. “CPC has a long history of investing in impactful projects, and we’re excited to have them as a partner in this initiative. Their investment will enable us to create positive generational change for communities, for minority real estate entrepreneurs, and for the entire industry. Especially during a difficult time in the real estate industry, their investment allows much-needed community-serving projects to move forward and provides a leveling of the playing field for minority developers.”
Entry into the real estate development industry has been extremely challenging for emerging developers. It is exponentially more so for rising Black and minority real estate entrepreneurs due to entrenched systemic barriers around access to capital at all stages of the development process. The Catalyst Fund aims to break down these barriers by investing in developers looking to deliver neighborhood revitalizing projects, and who wish to grow their business infrastructure to continually affect positive changes in their communities.
CPC’s equity investment focuses on developers who are committed to the creation and preservation of high-quality affordable housing, and will initially be deployed in Ithaca, New York; National City, California; Newark, New Jersey; Philadelphia and Washington, D.C.
“At CPC, we invest in projects that strengthen underserved communities and we support the minority developers and real estate entrepreneurs who work, live, and build in those communities,” said Tell Metzger, senior vice president, equity investments at CPC. “Shift’s Catalyst Fund allows us to expand our efforts to produce great housing, and to advance greater diversity, equity, and inclusion in the industry. We’re thrilled to work with a partner whose mission and values so closely align with ours. We hope that this investment brings more attention and participation to this transformative Fund and the energy and skill behind it, and we look forward to continuing our work together with Shift.”
