The United States faces a severe housing affordability and availability crisis. Nationwide, the housing supply falls short by an estimated 4.5 million homes. New construction hasn’t kept pace with household formation – in 2022, about 1.8 million new families were formed but only 1.4 million homes were built, widening the deficit. This shortage has pushed homeownership out of reach and driven up rents, with nearly half of renter households now cost-burdened (spending over 30% of income on rent). In short, millions of Americans cannot find affordable places to live, highlighting an urgent need for more housing. At the same time, underutilized commercial properties are abundant, especially in the wake of pandemic-driven shifts. Office vacancies have climbed to record highs – averaging about 19.7% nationally (a 30-year high). That means roughly one in five office square feet is sitting empty, a stark contrast to the tight housing market. In some regions the fund targets, the trend is pronounced: for example, nearly one-third of Hartford, CT’s office space is vacant. Likewise, many hotels saw drastic declines in occupancy; in 2020 hotel occupancy plunged to just 37%, and even with travel rebounding, certain older or poorly located hotels continue to underperform. This juxtaposition – surplus idle commercial space alongside a housing shortage – creates a unique opportunity to solve two problems at once.

Housing Shortage by the Numbers: The U.S. is short 4–5 million housing units and “missing” 8 million+ households who are doubling up with others. Housing costs have outpaced incomes for two decades, leaving almost 50% of renters cost-burdened (The U.S. Is Now Short 4.5 Million Homes – NMP). The target regions (CT, FL, TX, GA, NC, SC, TN, NM) are no exception – many Sunbelt states have booming populations that exacerbate housing demand, while older Northeast markets like Connecticut face affordability crunches.Underutilized Commercial Space: Office vacancy rates ~20% nationally mean millions of square feet of buildings sitting empty. Major Sunbelt markets mirror this trend (Houston and Dallas-Fort Worth, for instance, hover around 18% vacancy). Older business districts have been hit hard – Hartford, CT has about 33% office vacancy . The hotel sector similarly has pockets of distress; leisure travel recovered, but business travel lags and competition from short-term rentals pressures hotel revenues . Many hotels and offices in our target states are now “stranded assets” – well-located structures with high vacancy and declining income, essentially buildings in search of a new purpose.

Bottom line: There is a mismatch between supply and demand – too little housing and too much idle commercial space. This fund aims to bridge that gap, turning yesterday’s offices and hotels into tomorrow’s apartments. By doing so, we address the housing crisis with an innovative supply solution while breathing new life into underperforming properties.