Equity Investments

NCRF believes it takes all kinds of capital to revitalize communities, wherever they are located. We must welcome private investment capital into underserved communities in need of revitalization. In recognition of this, one of NCRF’s earliest activities was investing in and developing private real estate-based equity funds that seek to make a profit for their investors while achieving social good and now often an environmental good such as repurposing existing buildings or green building. This is known as double or triple bottom-line investing. While NCRF is not making new equity investments at this time, we believe equity investments continue to be an excellent way to engage private investor capital in community revitalization.

Genesis LA Real Estate Fund

Genesis L.A. Real Estate Fund I (Genesis Fund) was the first private real estate-based equity fund focused on double bottom-line investing in California. This innovative economic initiative targeted blighted areas of Los Angeles County for revitalization. Investors received market rate returns while generating significant social return on investment through the alleviation of blight and creation of jobs. In 2000, NCRF invested $5 million in the $85 million Genesis Fund, the only nonprofit organization to do so. Genesis Fund is no longer active.

Nehemiah Sacramento Valley Fund

NCRF, inspired by the Genesis Fund, wanted to bring similar benefit to the Sacramento Metropolitan region and the cities of Lodi, Stockton and Modesto. The Nehemiah Sacramento Valley Fund (Fund) was founded and developed by NCRF to mitigate the effect of rapid population growth and rampant real estate development of the suburbs, which resulted in overlooked, distressed neighborhoods in the urban core. The Fund was designed to be a triple bottom-line investment vehicle, producing near market-rate returns to its investors while revitalizing distressed communities and, whenever possible, repurposing existing structures to new uses that would create jobs and housing. The ultimate goal was the overall enhancement of economic vitality and quality of life in the Sacramento region.

The Fund invested in real estate projects to support urban-scale, in-fill development and adaptive mixed-use housing and commercial projects. After investing $1 million for fund development and start-up, NCRF raised nearly $30 million from investors to capitalize the Fund, including $3 million of its own capital. The Fund is no longer active.