Partnering For Strength: Why We Joined Forces With SHIFT Capital
Voyage Investments was founded in 2018 with the purpose of having an impact-driven approach to the ownership and development of multifamily real estate in the City of Philadelphia. Growing up in the “neighborhood”, Juan and I have witnessed the displacement of our communities through the boom of new real estate development over the last seven years. Philadelphia, like many US cities, is becoming less affordable for its residents as rents and homeownership prices continually outpace median household income. Juan and I joined together with the goal of bridging this affordability gap by renovating obsolete apartment buildings and preserving affordable rents for median income families.
As with most start-ups, the beginning is the most challenging period. We launched with the thesis that existing apartment buildings between 10–50 units were too large for the majority of investors and too small for the institutional investor. As we came to learn, competition within the 10–50 unit range is fierce, and due to market forces, prices continue to rise. Competing against larger firms enjoying a lower cost of capital and deeper resources has been our challenge. We were outbid on many occasions at prices where maintaining affordable rents would be an impossible feat. As a result, we began searching for opportunities to pivot our energy into while maintaining our impact-driven strategy.
Our search led to an unique opportunity to participate in SHIFT Capital’s inaugural Developer-in-Residence program. The program trains and cultivates the next generation of impact real estate developers by integrating individuals or small teams, like Voyage, with the SHIFT team, to create a powerful mix of experiential, on-the-project, and peer-to-peer learning.
SHIFT has established itself as an impact-driven development group missioned to create just and equitable neighborhoods. We have seen the work and the investments by SHIFT in the neighborhoods where we live and work. To date, SHIFT has invested over $150 million in underserved Philly neighborhoods through the development and management of over 1 million square feet of real estate, and by delivering community solutions and programming that maintain and diversify a neighborhood’s character while maximizing long-term affordability and minimizing displacement.
Juan and I truly believe our mission aligns and augments SHIFT’s mission. By joining forces we will gain first-hand experience working on SHIFT’s active deals, learn best practices, connect with their existing relationships, and receive strategic guidance to better scale our platform. In turn, Juan and I will provide strategic and analytical support towards SHIFT’s development and partnership initiatives. Together, we will accelerate our mission to deliver high-quality, equitable, affordable housing to the Philadelphia area. This impact-driven mission is what connects both companies as we embark on this ever Shifting Voyage.
Additional information: http://shiftcapital.us/shift-developer-in-residence/