Minority-led real estate fund SoLa Impact announced today a $50 million commitment to its “Black Impact Fund” from the California State Teachers’ Retirement System (CalSTRS), anchoring the fund’s second close, and bringing total investments in the fund to over $250 million.

SoLa’s family of social impact real estate funds utilize a “double bottom line strategy,” focused on preserving, refreshing, and creating high-quality affordable housing in low-income communities. The Black Impact Fund is a family of real estate funds investing in historically overlooked Black and brown communities in major urban markets. The fund is part of SoLa’s initiative to invest over $1 billion in affordable and workforce housing and related social impact strategies across urban cities in California. 

The new investment was made via CalSTRS’ joint venture with Belay Investment Group, and marks the investor’s first real estate investment from its Sustainable Investment & Stewardship Strategies (SISS) unit.

Kirsty Jenkinson, CalSTRS’ SISS Investment Director, said:

“Our mission is to provide a secure retirement for California’s public educators and beneficiaries. Our dedicated portfolio seeks to achieve superior financial returns while creating demonstrable social and environmental outcomes. The investment with SoLa Impact is our first real estate investment within SISS and aligns with our goals. We are delighted to work with the SoLa team, our colleagues in the CalSTRS Real Estate team and our partners at Belay to expand affordable and workforce housing in California.”

Other investors in the fund include PayPal Holdings, Equitable Insurance, the Skoll Foundation, Ally Bank, Potenza Capital, Pacific Premier Bank, and Adirondack Capital. The fund plans to formally close once it reaches its $300 million target.

Martin Muoto, Chief Executive Officer of SoLa Impact, said:

“We are honored to have CalSTRS anchor our second close with such a significant commitment. We looked for a mission-aligned investor that operates in a true partnership with emerging managers, has an appreciation for the diversity of our team, and has deep experience in institutional investing.  CalSTRS and Belay are a perfect fit for SoLa Impact.”