$56 Million in Private Investment from Local Banks, Foundations, Educational Institutions, and Companies Complements $20 Million Investment from Metro; Fund’s Initial $450K Loan to Support Gentry Investment Properties in Preserving Affordable Housing in Madison. 

Catalyst Fund’s First Investment

NASHVILLE, Tenn. (March 5, 2025) – The Nashville Catalyst Fund has closed on $76 million in capital from local partners and made its first investment, providing a $450,000 loan to Gentry Investment Properties LLC to acquire and preserve a four-unit home in Madison. This investment marks a significant first step toward the Fund’s mission to preserve and create affordable housing solutions in Nashville. 

The Madison property will undergo updates as units become available. At the same time, the Catalyst Fund’s financing structure includes a requirement that two of the units be maintained as affordable for lower-income Nashvillians with incomes at or below 100% of Area Median Income.

It is expected that tenants at the Madison property will have lower income and be supported by Housing Choice Vouchers, which enable even deeper affordability to be provided without requiring additional subsidy funding from Metro or state sources.

Supporting Affordable Housing in Nashville

“The Catalyst Fund has been instrumental in helping Gentry Investment Properties achieve our goals for this project and setting up for greatness in the future,” says Vandale Gentry, Principal at Gentry Investment Properties. “Their support has been invaluable.”

Gentry, a participant in Urban League of Middle Tennessee’s R.E.D. (Real Estate Developers) Academy is leveraging financial support and strategic training from the program to strengthen his role in Nashville’s affordable housing sector.

The Nashville Catalyst Fund’s ability to move quickly to close this investment ensures that mission-driven developers like Gentry can compete in Nashville’s competitive real estate market while prioritizing housing stability for residents in need.

“When we launched the Catalyst Fund, we joined forces with the financial and philanthropic community to add another tool to preserve affordable homes in Nashville that might otherwise be lost to redevelopment,” says Mayor Freddie O’Connell. “I’m encouraged to see the shared investment beginning to pay off in the community.”

A Collaborative Approach to Housing Solutions

Launched in June 2024, the Nashville Catalyst Fund is a nonprofit loan fund designed to provide fast, flexible capital for mission-aligned developers to preserve and expand affordable housing. The Fund was created through a partnership between the Metropolitan Government of Nashville and Davidson County, the Community Foundation of Middle Tennessee (CFMT), and private sector investors to address the city’s growing housing challenges.

The Fund has successfully raised its first round of capital with a total capitalization of $76 million. This is made possible by generous investments from a group of banks led by First Horizon Bank and several civic-minded institutions in Nashville focused on advancing the creation and preservation of affordable housing.

“First Horizon is thrilled to collaborate with the Nashville Catalyst Fund and its partners to drive meaningful impact in our community,” says Carol Yochem, President of First Horizon Central Region. “This initiative will provide developers with essential capital, helping create much-needed affordable housing. We are excited to see the first project come to life and look forward to the lasting benefits this fund will bring.”

Key Investors and Financial Backing

The complete list of the first round of the Catalyst Fund investors includes:

• Citizens Savings Bank & Trust
• First Horizon Bank
• FirstBank
• Metropolitan Government of Nashville and Davidson County
• Pinnacle Financial Partners
• Regions Bank
• Ryman Hospitality
• Studio Bank
• The Healing Trust
• Vanderbilt University

These resources provide crucial financing solutions—including acquisition, bridge, and predevelopment loans—to nonprofit, mission-driven developers and emerging BIPOC developers who often face barriers in securing funding.

“The Catalyst Fund is a first-of-its-kind collaboration to address the need for more affordable housing in Nashville,” says Bert Mathews, Chief Executive Officer of The Mathews Company, Executive Vice President and Principal at Colliers, and Nashville Catalyst Fund Board Member. “Along with the Community Foundation of Middle Tennessee and Metropolitan Government of Nashville, we’re bringing together public, private, and charitable funds to offer flexible loan services for mission-driven developers.”

Looking Ahead: Future Investments in Housing

Mathews continues, “Closing on our first investment with Gentry Investment Properties is a huge milestone. I’m excited to be involved with future projects focused on the affordable housing need in our community.”

The Catalyst Fund aims to raise an additional $20 million from civic-minded institutions in Nashville to continue supporting the creation and preservation of affordable housing in Nashville. With its first round of investment successfully closed, the Fund is poised to accelerate its impact, ensuring that more Nashvillians have access to safe, stable, and affordable housing.

For more information about the Nashville Catalyst Fund, including how to invest or apply for a loan, visit www.nashvillecatalyst.org.