BRIDGE Housing Bond Issue Exceeds Expectations, Raising $175 Million to Accelerate Development and Acquisition of Affordable Housing

The offering, underwritten by Morgan Stanley, was increased from $150M amid strong investor confidence in the nonprofit developer’s work to ease the affordability crisis on the West Coast

SAN FRANCISCO--(BUSINESS WIRE)--BRIDGE Housing, the leading nonprofit affordable housing provider on the West Coast, has closed on $175 million in taxable general obligation bonds after expanding the offering due to strong investor demand.

BRIDGE Housing had planned to issue $150 million in Taxable Bonds, Series 2025 (Social Bonds) as it accelerates growth to address the affordability crisis in some of the nation’s most expensive housing markets. Underwritten by Morgan Stanley, the offering was oversubscribed, and BRIDGE increased the issuance to $175 million – its largest bond offering to date. S&P Global Ratings assigned an AA- rating to the bonds, in line with BRIDGE’s overall rating, citing the company’s “extremely strong” management and liquidity.

The proceeds will provide development and acquisition funds to keep BRIDGE Housing on track to meet its goal of adding 5,100 affordable housing units in California, Oregon, and Washington by 2027.

“This new capital is vital to supporting BRIDGE’s growth to address the deepening housing crisis for low- and moderate-income residents on the West Coast,” said BRIDGE Housing President and CEO Ken Lombard. “We’re grateful to Morgan Stanley and our investors, who are demonstrating confidence in BRIDGE and a commitment to creating quality affordable homes that offer dignity and hope to residents in need.”

The bond issue extends BRIDGE Housing’s legacy of capital markets leadership among nonprofit affordable housing providers as it seeks to diversify its financing sources. Tapping capital outside of government subsidies, the traditional source of affordable housing finance, allows BRIDGE to move faster and at greater scale, particularly in the increasingly important area of acquisitions.

BRIDGE Housing was the first of its peers to receive an S&P credit rating and issue taxable bonds. The new $175 million bond issue was BRIDGE’s second Social Bond, following its landmark $100 million bond sale in 2020, which created a new asset class for the nonprofit development industry.

BRIDGE Housing designated the bonds as Social Bonds due to its mission and the intended use of proceeds to finance affordable and transit-oriented housing. S&P Global Ratings provided a second-party opinion that the bonds complied with recognized standards and qualified for the Social Bond designation.

BRIDGE Housing’s capital markets innovation also includes becoming the first nonprofit housing firm to issue tax-exempt construction bonds, when it raised more than $70 million last year for one of Portland, Oregon’s largest affordable housing communities. In addition, in September BRIDGE launched a $350 million impact fund that attracted major financial institutions as equity investors to acquire, preserve, and create affordable and workforce housing.

Morgan Stanley has been a key financial partner to BRIDGE Housing. In addition to underwriting this bond issue, the investment bank underwrote BRIDGE’s first taxable bond offering and later joined with National Equity Fund to provide a $250 million revolving credit facility that has facilitated BRIDGE’s development and acquisition activity.

Founded in 1983, BRIDGE Housing is a leader in creating safe, healthy, and affordable housing communities along the West Coast. Currently, BRIDGE’s portfolio totals about 15,000 units at 139 properties, where the nonprofit provides high-quality homes and positive social impact by connecting residents to comprehensive services that enhance economic opportunity, education, wellness, and overall quality of life.

“This Social Bond issue fits into our strategy to accelerate our mission-driven work and emerge not only bigger but also stronger to sustain growth and impact throughout the West Coast,” said Delphine Sherman, BRIDGE’s Chief Operating Officer and Chief Financial Officer. “The proceeds will keep us on course to achieve our goal of 5,100 additional units by 2027 and support the more than 10,000 units in our overall development and acquisition pipelines.”

The bonds are due to mature in 2035.

About BRIDGE Housing

BRIDGE Housing Corporation is a leading nonprofit owner, developer, and manager of high-quality affordable housing on the West Coast, with a mission to strengthen communities and improve lives. Founded in 1983, BRIDGE Housing has participated in the creation of more than 23,000 affordable homes in California, Oregon, and Washington, with a total development cost of $6 billion. Its current $4 billion portfolio totals about 15,000 apartments that are home to more than 30,000 residents, with more than 10,000 additional units in the development and acquisition pipelines. For more information, visit https://bridgehousing.com/.