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Feel-good fund protects homes, offers good returns

By Konrad Putzier

The Community Development Trust (CDT), a REIT that provides capital for the preservation of affordable housing, announced that it has raised $44.5 million through a private placement offering.

Its fourth capital raise since its inception, this offering by CDT involved the issuance of preferred shares to nine investors.

The organization said it will use these funds to advance their work of preserving and expanding affordable housing nationally through mission-driven investments.

Ocean Towers in Coney Island

“We are demonstrating that there is a market for a variety of financial investment alternatives secured by community development assets, where investors can receive adequate returns while supporting vital social goals,” said Joseph Reilly, president and CEO of CDT. “We are proud to be receiving investments from these partners and eager to put the funds toward the expansion and preservation of the country’s supply of high-quality, affordable housing.”

CDT’s senior vice president for Capital Initiatives, Merilyn Rovira, said the trust is targeting investments in New York City, among other states, for its newly raised funds.

Most recently, CDT purchased Ocean Towers in May, a 360-unit property in Coney Island, with partner Proto Property Services. Rovira said the purchase has preserved the units as affordable housing.

The trust has also worked on making Ocean Towers more storm-resilient, and Rovira said the work is about half-way done.

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