Felix Flannigan, director of Tacoma’s Martin Luther King Jr. Housing Development Association, came in for an editorial board Tuesday with some financial types to announce the launch of a so-called "double-bottom line" real estate development fund.
The association has created a nonprofit subsidiary called Sound Community Initiatives, which Flannigan serves as president and CEO. CSI selected the Kennedy Wilson Fund Management Group of Los Angeles, which plans to raise as much as $90 million to invest in low- and middle-income areas in Pierce, King, Snohomish, Kitsap and Thurston counties.
Larry Kopp, a former Citicorp executive and former managing director of the Russell Co., is the chairman of the new nonprofit. Kopp is a heavy hitter in financial and civic circles. See a mini-bio here.
Kennedy Wilson says it services more than $8 billion in real estate assets nationwide and acts in investor, developer and management roles. “Double bottom line” refers to the returns for fund investors as the first bottom line, and neighborhood improvement and economic revitalization as the second bottom line.
This article describes an abandoned 615-unit housing complex Kennedy Wilson took over and transformed in Alameda, Calif.
The Kennedy Wilson representatives said the new fund will have between $65 million and $90 million to invest. Combined with bank financing, the fund’s capital could trigger $200 millon to $360 million in development here.
No specific projects were announced. K-W’s John Pradhu said his firm has some prospects in mind but will also be fielding proposals from developers. Flannigan said the fund has no connection with the housing association’s current $30 million mixed-use project at South 11th Street and Martin Luther King Jr. Way.
More on that later.