CAF & Goldman Sachs Asset Management Launch Social Impact
Dallas, Texas (August 16, 2021) – From the outside, The Residence at North Dallas looks like many similar apartment communities. But in fact, it is the first acquisition for a new partnership between CAF and the Urban Investment Group within Goldman Sachs Asset Management (Goldman Sachs) focused on providing high quality workforce housing with free on-site services in areas with access to employment opportunities.
“The ESG trend of investing, especially the ‘S,’ has been slow to catch on in the real estate market,” said CAF Companies CEO Chris Faulkner. “By partnering with Goldman Sachs, a leader in real estate impact investing, we expect this market to grow exponentially as more investors realize its positive impact on communities and the bottom line.”
Dallas-based CAF, which operates 35 multifamily properties in Texas, worked with Goldman Sachs Asset Management to create the impact-oriented strategy to acquire The Residence and add educational, personal and workforce development programs on-site to enrich the resident’s quality of life, all while maintaining affordable rents. “Our internal analysis and academic research led us to believe that we can align investor and resident interest and expect strong returns via this purpose driven strategy,” said Faulkner. “We expect these programs will result in higher retention rates as residents find their lives enriched and spread the word about the programing.”
“After a year when families are increasing their reliance on home, the need for quality workforce housing has never been higher,” said Sherry Wang, co-head of the Urban Investment Group within Goldman Sachs Asset Management. “We are honored to partner with CAF and KIDS-U to provide free childcare and enrichment in a convenient setting for these working families.”
At The Residence, KIDS-U will provide free programing in math, language arts, social-emotional learning and summer enrichment programs for residents. Other local non-profit organizations will provide free programs including ESL classes and financial literacy programs for adults. In addition, a local artist is working with children on a mural to decorate the facility’s new community center where programming is provided.
“KIDS-U is an innovator in high quality afterschool programing and allows us to provide high quality curriculum that is tailored to enrich the quality of life for residents. Free tutoring and childcare, for instance, is potentially our most impactful program and an excellent fit for this family-oriented community,” said Matt Falkin, vice president of CAF Funds. “We are always looking to expand our network of programming providers and have already heard from a number of non-profits in the area that would like to join us to provide additional services. We have also had a positive response from regional banks – including Origin Bank – that have supported the strategy by making donations to our non-profit partners.”
The upgrades to The Residence are also planned to incorporate sustainable design features, such as LED lighting, more efficient water fixtures, updated HVAC units and smart landscaping. “The eco-friendly enhancements exemplify our partnership’s holistic ESG strategy. By reducing energy costs for residents, the improvements not only minimize the building’s environmental footprint but further enhance our commitment to affordability,” said Nick Calluzzo, a vice president in the Urban Investment Group within Goldman Sachs Asset Management.
CAF currently has several additional acquisitions for this strategy in their pipeline. “We see a large number of sites throughout Texas where this type of deal will make economic sense,” said Faulkner. “We also see partners such as Goldman Sachs with the commitment and funding to make these types of win-win projects a reality.”
About CAF
CAF Companies has 35 multifamily properties in Texas, with plans for further expansion in the DFW and Houston markets as well as other parts of Texas. Founded in 2010 the CAF team has closed on and managed more than $3 billion in apartment properties.
About The Goldman Sachs Asset Management Urban Investment Group (UIG)
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2.3 trillion in assets under supervision worldwide as of June 30, 2021. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Established in 2001, the Urban Investment Group within Goldman Sachs Asset Management has committed over $10 billion through real estate projects, social enterprises and lending facilities for small businesses and students, creating economic value and opportunities for underserved communities and families.
Image Caption: At The Residence, KIDS-U will provide free programming in math, language arts, social-emotional learning and summer enrichment programs for residents. Other local non-profit organizations will provide free programs including ESL classes and financial literacy programs for adults. In addition, a local artist is working with children on a mural to decorate the facility’s new community center where programming is provided.
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