Jonathan Rose is not deterred by the anti-ESG wave penetrating the core of real estate.
Rose’s firm raised $660 million for its latest impact fund to acquire and improve affordable and mixed-income multi-family across the U.S, The Real Deal has learned. Notable investors include Capital One and the Ford Foundation.
The fund by Jonathan Rose Companies will also focus on “greening” properties and “reducing climate impacts.”
Green investments, along with other initiatives perceived as beneficial for the climate, have faced intense backlash from Republican legislators and President Donald Trump. As a result, investors withdrew $6.1 billion from ESG funds during the first three months of 2025, according to MorningStar.
But Rose said the pushback against climate-focused investments has led to new opportunities and narrowed the field of investment managers, putting his firm in a good position.
“The truly impact-seeking investors are filtering out projects they think are greenwashing,” said Rose in an interview. “There’s less distraction.”
Rose’s business of affordable housing is a game of hitting singles instead of home runs. Investors expect consistent returns over a long period of time with minimal risk. Rose’s fund targets returns of 10–12 percent. About 75 percent of his latest fund’s investors are returning investors.
Rose’s game plan is relatively simple: he does not overpay for properties and he relies heavily on public-private partnerships.
“We’ll go to communities and say we’ll extend the period in which the projects are affordable if you give us a 20-year tax abatement,” said Rose.
Rose said his firm will often seek out workforce housing and try to negotiate with communities for a tax abatement in exchange for turning a portion of the properties into affordable housing. By obtaining a 20-year tax abatement, Rose can minimize costs. Rose also “greens” projects by adding more cost savings. These include: LED lights, installing new HVAC, adding solar, and reducing water usage. He projects a five-year payback on these investments.
Jonathan Rose Companies’ Preservation Funds have raised more than $1.5 billion so far. His latest fund, his sixth, will focus on acquiring properties in New York, Boston, Chicago, San Francisco, Southern California, Seattle, Denver and Washington D.C.
Rose began his career in 1976 at Rose Associates, which was started by his grandfather Samuel Rose and great-uncle David Rose in 1928. But after 13 years, he left the firm and launched Jonathan Rose Companies. His firm now has $4.6 billion in assets under management.
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