Tacoma, WA – May 30, 2024 – Catalyst Opportunity Funds (Catalyst), a private equity firm focused on affordable and workforce housing, and Ethos Development announced today the grand opening of the Moraine, a 160-unit multifamily building in the Hilltop neighborhood of Tacoma, WA, which pairs housing affordability and sustainability in its design and execution.

The delivery is a milestone for Tacoma’s Hilltop neighborhood, a low-income and primarily BIPOC community with a significant lack of affordable housing options. This development directly addresses the Hilltop’s affordability needs, creating 160 housing units, the majority of which target individuals and households earning <80% of the Area Median Income (AMI). This is made possible by a combination of public private partnership and Catalyst’s innovative two tranche structure.

The Moraine is the first building in Catalyst’s national portfolio to benefit from the firm’s innovative two-tranche fund structure, specifically designed to boost affordability amidst the nation’s acute and unrelenting housing crisis. The structure marries market-rate return oriented capital (in Tranche A) with less yield-sensitive, more affordability-driven capital (in Tranche B). The combination of a 12-year tax exemption affordability requirement and Tranche B dollars, unlocks affordably to households making <80% AMI in the majority of the Moraine units. Many of these units are larger and designed for families, providing a proof point for the firm’s innovative financial structure, experience with public private partnership and the impact of Tranche B capital.

In addition to providing quality, affordable housing, the Moraine incorporates sustainability attributes. The building has rooftop solar and features EnergyStar and WaterSense appliances and fixtures, reducing building consumption, shrinking tenant utility costs, and facilitating a low carbon lifestyle for residents.

In addition to sustainable unit features, the building includes two exterior courtyards and a total of 26 onsite trees. The Hilltop neighborhood suffers from a significant lack of tree canopy, which has created a heat-island effect, making the community 10 degrees hotter than the average Tacoma block. The native landscaping and planted courtyards help to absorb sunlight, provide shade, reduce heat, and increase tenant wellbeing. “We believe in human-centered design, focusing on affordability, energy efficiency, and creative solutions to support quality of life,” explains Paul Del Vecchio, President of Ethos Design.

Catalyst is a sizable investor in Tacoma’s Hilltop and has invested in projects totaling $75+ million, with its first investment dating back to 2021. With the delivery of the Moraine, Catalyst’s Hilltop portfolio accounts for over 320 new housing units and 6,000 square feet of commercial space, occupied by or targeting high-impact goods and service providers. “As a real estate investment firm, we believe that projects can be both financially rewarding, as well as socially and environmentally impactful. The Moraine is exciting proof point of that thesis. We believe in this community and we’re committed to creating affordable, sustainable buildings that support it and allow it to thrive,” shared Kristian Peterson Catalyst Managing Partner.

About Catalyst:

Catalyst is a double bottom-line private equity firm focused on transformative real estate investments in high potential, but historically underserved U.S. markets. With over $1b worth of total real estate across the US, Catalyst invests in impactful, market-rate return oriented development projects led by community-driven, diverse developers, with a primary focus on workforce affordable housing. In addition to providing new, affordable housing units, Catalyst works to facilitate an influx of community services tailored to the needs of each investment community, including preventative healthcare, workforce training and healthy, nutritious food. Institutional investment expertise, relationships with qualified sponsors in high-growth secondary markets, as well as significant experience in the structuring of creative capital stacks give Catalyst a competitive advantage in delivering long-term value creation to investors, as well as positive outcomes within communities.

Media Contact: Julianna Scionti / 385.317.7255 / julianna@catalystimpact.com