New Alliance Creates Roadmap to Equity in Commercial Real Estate
CREUnited aims to increase minority ownership in CRE, with the overarching goal of increasing minority-managed assets
BETHESDA, Md., July 16, 2021 / PRNewswire / – The lack of diversity in the commercial real estate industry is glaring, and industry leaders agree that transformation is imperative. While minorities make up over 48 percent of the U.S. tenant population, only four percent of real estate businesses are owned by women or minorities, according to the U.S. census. According to a study by Harvard University, minority companies control just over 1.2 percent of all assets under management (AUM). To fill this gap, Walker & Dunlop created CREunited – an alliance between industry heavyweights and minority owned companies – dedicated to increasing minority representation and the AUM.
CREUnited
With member firms like Fannie Mae, Freddie Mac, Camber Creek, Greystar, Kayne Anderson Real Estate, KKR, Pacific Life, Symetra, Manulife Investment Management and Unibail-Rodamco-Westfield, the partnership covers all aspects of the industry, including lenders and private Equity firms, institutional investors, and owners and operators of all asset classes.
“We have seen good intentions in the industry to increase the participation of minority owners and operators, but real, sustainable change requires the industry to come together,” said TJ Edwards, managing director of Walker & Dunlop’s Proprietary Capital Group. “CREUnited brings together organizations from across the commercial real estate industry – all with a common interest: removing barriers that have prevented minority owners and operators from thriving in this industry.”
“The collective power of this alliance will help us bring about real change for all players in the industry. This will create a domino effect that will lead to the growth of the AUM for minority companies, ”said Bo Okoroji, CREUnited Advisory Board Member and Vice President of Investments & Divestments, Unibail-Rodamco-Westfield. “There is an important element of accountability here too – the entire industry is responsible for the change needed to improve diversity, and the corporate partners within this initiative commit to doing their part to increase ownership and growing representation . “
The story goes on
Earlier this year, Allianz hosted a listening session with executives from 11 leading minority-owned commercial real estate companies to kick off the initiative. Executives from Banneker Ventures, Dantes Partners, FLGA, Gateway Merchant Banking, Mohanna Development, New Faze Development, Osso Capital, Rule Enterprises, Standard Real Estate Investments, LA Bolden and The Menkiti Group shared their personal stories and perspectives on the challenges and obstacles in the industry.
Based on the discussion, CREUnited identified five goals and developed prospective solutions for each. Together these create a blueprint for measurable progress:
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Increase transparency through industry-specific reporting and tracking
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Build new channels for minorities to gain access to established professional networks
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Expand access to debt capital and remove barriers to equity
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Support in expanding the portfolio of minority owners beyond affordable housing to market-driven apartment buildings and other asset classes such as retail, office, industrial and hospitality
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Implement best practices to ensure the flow of capital from institutional investors to minority-owned companies
CREUnited Advisory Board members will monitor these five goals and encourage new partnerships to make tangible progress on these strategies and solutions. For more information on the formation of the alliance, please see our previous press release.
“Walker & Dunlop started this initiative because our team recognized that a company-specific approach to diversity was not enough,” said Willy Walker, Walker & Dunlop Chairman and CEO. “Through the power of partnership, we will change the industry.”
About Walker & Dunlop
Walker & Dunlop (NYSE: WD) is the largest financier for the multi-family business in The United States and the fourth largest lender to all commercial real estate, including industrial, office, retail, and hospitality sectors. Walker & Dunlop enables real estate owners and operators to bring their visions of communities – where Americans live, work, shop and play – to life. The power of our people, the leading brand, and industry leading technology make us more insightful and valuable to our customers, delivering an unmatched experience every step of the way. With over 1,000 employees in all major US markets, Walker & Dunlop is consistently recognized as one of Fortune’s Great Places to Work® and is committed to making the commercial real estate industry more inclusive and diverse, while at the same time introducing significant social, environmental and economic changes effect our communities.
Cision
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SOURCE Walker & Dunlop, Inc.