Denver TOD Fund, LLC.
United States of America
Last updated 13 May 2020, by Impactyield.
Developed countries (203) / More developed regions (202) / More developed regions (North America, Asia & Oceania) (153) / United States of America (112)
The Denver TOD Fund (the Fund) is the first affordable housing-focused structured acquisition revolving loan fund in the country. Its investment strategy focuses on creating and preserving affordable housing near transit by acquiring and preserving strategic properties in transit corridors.
The Fund's design answers the social need to provide and preserve homes near transit for low-income households, who on average spend 60% of their gross income on housing and transportation expenses combined.
Originally capitalized at $15 million in April 2010, the Fund is seeking another $15 million to facilitate regional expansion and leverage over $500 million in local economic development.
Enterprise, along with The Urban Land Conservancy (ULC), the City of Denver, and its key partners, the City of Denver and its local and national partners bring together a combined expertise and knowledge of financing community development and ensuring that the benefits of expanded public transportation will be available for all residents.
The Fund currently seeks $2-$3M in near-equity investments from institutional and foundation investors. If successfully raised, the Fund will seek Charitable Purpose and Senior Debt investments to fill out the capital stack.
Investment tranches for investors into the fund include:
Investor Category: Senior Market-Rate Debt
Debt: $5.5 MM
Investor Category: Charitable Purpose & Below-Market Debt*
Debt: $5.5 MM
Investor Category: Subsidy & Recoverable Grants
Debt: $2.5 MM
Investor Category: Initial Start-up Equity
Equity: $1.5 MM
* Enterprise Community Partners took the only Second-Tier position with Below-Market Debt.
The fund will deploy capital as debt for an average investment period of 5 years, and as debt so long as the below criteria are satisfied:
1) Guarantee - the ULC guarantees only the Senior Capital position of any loan, or approximately 40% of each loan
2) Liquidity - the borrower (e.g. developer) is required to maintain an equity balance of 93% of each outstanding loan total and liquidity of at least 12 months of total debt service for operating property loans (1.10DSC) and 24 months for all other loans.
of track record
the year funded
Enterprise Community Partners.
Headquarters location: United States of America
Other funds managed by this asset manager: Enterprise Multifamily Opportunity Fund I, LLC
Equal rights to ownership basic services technology and economic resources
Safe and affordable housing
Double the improvement in energy efficiency
Expand and upgrade energy services for developing countries
Full employment and decent work with equal pay
Develop sustainable, resilient and inclusive infrastructures
Key performance indicators
Asset manager: Enterprise Community Partners.
Product track record: Fund has 13 years of track record
Target IRR: 4%
Committed Capital: 15,000,000 USD (US Dollar)
Target return category: Below risk-adjusted market-rate of return
Fund domicile: United States of America
Product status: Open - post first close
Style/Stage: Development, Value-Added
Inception year: 2010
Vintage year: n.a.
Target region: Developed countries, More developed regions, More developed regions (North America, Asia & Oceania), United States of America
Target close date: 01/12/2012
Product term: 10 yr term
Assets under management: 30,000,000 USD (US Dollar)
Investment size: Min: 0; Max: 0; Avg: 0
Co-investment policy: LPs do not have priority, With LPs and non-LPs
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 7
Fund investments to date exited or repaid: 2
Management fee: n.a.
Carried interest: n.a.
Hurdle rate: n.a.
GIIN Investors' Council Investment: Yes
Limited Partners / Investors: Qualified purchasers only. Limited Partners include Enterprise Community Partners LLC., City of Denver, Urban Land Conservancy. Investors include the Enterprise Community Loan Fund, Enterprise Community Partners, The City of Denver, The Urban Land Conservancy, the McArthur Foundation, the Colorado Housing & Finance Authority, the Rose Community Foundation, the Mile High Community Loan Fund, U.S. Bank, First Bank and Wells Fargo.
Limited Partner / Investor Type: Other Institutional Investors
Phone number: +1 (303) 376-5412
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Program Director, Transit-Oriented Development
Vice President, Solutions
The TOD Fund has already created or preserved nearly 450 affordable homes, a new public library, and several thousand square feet of community-focused commercial space. The Fund seeks to preserve at least 1000 in Denver over its life, and hopes to preserve 1000 more if expanded.
Enterprise Community Partners connects development capital with advisory solutions to provide a bridge to economic opportunities across all 50 US states. Although the majority of our investment strategy finances affordable housing, we also invest in community development opportunities that compliment our work. By recognizing that a community requires more than housing, we support infrastructure development for healthcare centers, charter schools and other community facilities.
We believe a central piece to building a strong community requires everyone having access to decent, healthy affordable housing. Enterprise Community Partners has raised over USD 13 billion in equity, grants and loans to help build or preserve nearly 300,000 affordable rental and for-sale homes.