Under the deal, Ethos will be converting the formerly market rate property into deed restricted affordable housing through a unique public private partnership that leverages a California statutory property tax exemption. Under the deed restriction, half of the units will be restricted to families earning up to 80% of the Average Median Income (AMI) for Los Angeles, and 10 percent will be restricted to families earning up to 60% of AMI, for 55 years.
“We are excited to be scaling the potential for public private partnership around the production of affordable housing,” said Jennifer McElyea, Ethos Real Estate Managing Partner. “California has a critical shortage of public funds to address the housing crisis and innovative models will absolutely need to be part of the solution.”
The property was the second purchase for Ethos’ joint venture with GCM Grosvenor, investing on behalf of its clients. GCM Grosvenor (Nasdaq: GCMG) is a global alternative asset management solutions provider with approximately $73 billion in assets under management across private equity, infrastructure, real estate, credit, and absolute return investment strategies.
“We are proud to be partnering with Ethos in ways that creatively address the shortage of affordable housing in communities across California,” said Peter Braffman, Managing Director at GCM Grosvenor.
About Ethos Real Estate
Ethos Real Estate was conceived to address the critical housing shortage with a new approach. With a collective track record in real estate investment banking, private equity, development and partnership with the public sector, the principals of Ethos successfully established new investment structures that leverage private capital for the production of housing at all income levels. As a result, Ethos has become a trusted partner to public agencies and communities seeking to address their housing needs, with a mission to create positive change and a new narrative for residents, communities, and the housing system. For more information, visit: www.ethos-re.com.
About GCM Grosvenor
GCM Grosvenor (Nasdaq: GCMG) is a global alternative asset management solutions provider with approximately $73 billion in assets under management across private equity, infrastructure, real estate, credit, and absolute return investment strategies. The firm has specialized in alternatives for more than 50 years and is dedicated to delivering value for clients by leveraging its cross-asset class and flexible investment platform. GCM Grosvenor’s experienced team of approximately 530 professionals serves a global client base of institutional and high net worth investors. The firm is headquartered in Chicago, with offices in New York, Toronto, London, Frankfurt, Tokyo, Hong Kong, and Seoul. For more information, visit www.gcmgrosvenor.com.