author
Carlos Balthazar Summ
An article by the NeoFeed portal highlighted CIX Capital’s initiative in the affordable housing sector in California, USA, through the issuance of a $20 million ESG Affordable Housing Bond. This bond aims to finance development and construction projects in partnership with Castellan Real Estate Partners, a New York-based developer and investment firm. Issued in Ireland, the bond is easily accessible to Brazilian investors, with a minimum investment requirement of $200,000. The projected return for investors exceeds 11% annually, delivering a dollar-denominated return higher than the average for this segment.
The article explains that the CIX Capital bond functions as a bridge loan. “Since the government approves the project but does not grant the tax exemption in advance, the developer needs to finance the construction—this is the bridge that CIX provides. Only after the licenses for housing occupancy are received is the benefit released, allowing the credit to be sold to major banks.” In an interview with NeoFeed, Carlos Balthazar, CEO of CIX Capital, stated, “There is demand for quality private equity real estate investments to meet the need for strong currency returns.”
The report also mentions CIX Capital’s activities in the multifamily segment, highlighting a recently licensed 24-story building in New York.
Read the full report at: https://neofeed.com.br/negocios/cix-capital-da-familia-zogbi-vai-financiar-casas-populares-na-california/
Housing Deficit Rising in the U.S.
According to Balthazar, the housing deficit in the United States is steadily increasing, with an estimated 4.3 million units needed over the next 12 years to meet demand. California, Florida, and Texas are the states most affected, accounting for 40% of the demand for social housing, which benefits from various government programs.
With rental prices increasing by over 10% annually in some cities, the U.S. government is intensifying efforts to facilitate housing access. This includes redefining rules for how cities and states can use funds to create more affordable rental housing for individuals earning 65% or less of the area’s median income.
These government initiatives, combined with rising rental prices, make affordable housing an attractive investment. Additionally, over the past decade, real estate asset prices have risen approximately 110%, far outpacing inflation, which was just over 20% during the same period (St. Louis Fed, December 2021).
CIX Capital’s initiative is aligned with ESG principles. All developments will be certified under LEED (Leadership in Energy and Environmental Design) or Title 24 Building Energy Efficiency Standards, both of which are benchmarks for sustainable construction.
This strategic move underscores the growing significance of ESG-focused investments while addressing a critical need for affordable housing in the United States.
Access full article at NeoFeed
CIX Capital is an investment by Maiz: maiz.com.br