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Bio
Brian Allan Jackson (AJ) is President of LEO Impact Capital. He was previously Head of Social Impact Investing at JBG SMITH, where he led the formation of the Impact Pool, an investment platform that was named the Best ESG Investment Fund: Real Estate by ESG Investing. Prior to joining JBG SMITH, AJ spent fifteen years in real estate development and investment, leading more than one billion dollars of double- and triple-bottom line urban infill real estate development, including projects that received ULI’s Jack Kemp Excellence in Affordable and Workforce Housing Award. Earlier in his career, AJ served as Chief of Staff to the Administrator of the U.S. General Services Administration (GSA). AJ serves on the Affordable Housing Advisory Council for Fannie Mae, the Executive Committee of Up For Growth Action, the Workforce Housing Committee for the National Multifamily Housing Council (NMHC), and the Affordable/Workforce Housing Product Council of the Urban Land Institute (ULI). AJ earned a B.A. with honors from the University of Alabama and an M.B.A. with distinction from Harvard Business School.
Show Notes
Company and Structure
- Leo Impact Capital Formation (00:05:45)
- AJ Jackson explains the formation of Leo Impact Capital and how it differentiates from the prior mission of the impact pool.
- For-Profit or Nonprofit? (00:07:20)
- AJ Jackson clarifies that Leo Impact Capital is a for-profit enterprise, emphasizing the need to move private capital at scale for impactful solutions.
Background & Education
- Influences and Education (00:08:45)
- AJ Jackson discusses his upbringing, parental influences, and the value of education instilled in him.
- College and Career Choices (00:11:00)
- AJ Jackson talks about his decision to attend the University of Alabama, study economics and finance, and his early career choices.
Capitol Hill and GSA
- Transition to Capitol Hill (00:15:45)
- AJ Jackson shares his transition to working on Capitol Hill, including his experiences working with John Kasich and his involvement in the budget committee.
- Exposure to Real Estate (00:20:30)
- AJ Jackson details his unexpected exposure to real estate while working at the General Services Administration and the complexity of the agency’s operations.
- Government Interactions and Complexity (00:22:50)
- AJ Jackson discusses his learning experiences regarding government interactions with the private sector, the structure of the GSA, and the complexity of its operations.
- The dedication of GSA career staff (00:24:15)
- AJ Jackson expresses surprise at the dedication and professionalism of GSA career staff, highlighting their commitment to public service.
- Politics in real estate projects (00:24:55)
- The discussion shifts to the influence of politics in real estate projects, particularly related to courthouses and the challenges of working with federal judges.
- Negotiation and relationship building skills (00:26:10)
- AJ Jackson shares the valuable negotiation and relationship building skills he developed while working with judges and the Office of Management and Budget (OMB) for federal building projects.
- Understanding capital and operating leases (00:27:25)
- The conversation delves into the difference between capital and operating leases in the context of government real estate projects, highlighting the complexities and rules involved.
- Challenges in government real estate and funding (00:29:30)
- AJ Jackson discusses frustrations with government funding for capital expenses and the challenges in maintaining federal buildings, particularly in securing funding for building additions and renovations.
- Opportunities for government real estate portfolio (00:30:45)
- The focus shifts to opportunities for the government’s real estate portfolio, including right-sizing and upgrading assets, as well as addressing the decreased use of facilities and remote work options for federal employees.
- Repurposing federal government-owned properties (00:32:25)
- AJ Jackson discusses the potential for repurposing federal government-owned properties and the need for congressional support and legislation to facilitate such initiatives.
Harvard Business School
- Transition to business school and private sector (00:33:50)
- AJ Jackson explains his decision to attend business school as a means to transition out of politics and signal his move to the private sector.
- Value of business history course (00:36:30)
- AJ Jackson reflects on the valuable insights gained from a business history course at Harvard Business School, emphasizing the relevance of historical context in understanding business and economic trends.
EYA
- Transition to real estate career (00:38:30)
- AJ Jackson shares his deliberate efforts to transition into the real estate industry, including networking and exploring various sectors before ultimately finding resonance in for-sale residential business.
- Impact of mentors and career choices (00:39:52)
- AJ Jackson discusses the influence of mentors and the impact of meeting Bob Youngentob, which led to his decision to pursue real estate work that resonated with him.
- Learning about Public-Private Partnerships (00:42:00)
- AJ Jackson discusses his experience working on mixed-income housing projects and public-private partnerships.
- Chatham Square Project (00:43:20)
- AJ Jackson explains the origins and success of the Chatham Square project in Alexandria, Virginia, and its impact on the company’s direction.
- Complex Legal Structure (00:45:15)
- AJ Jackson details the complexities of dealing with publicly owned land and the legal intricacies of doing for-sale housing on it.
- Transition to Rental Projects (00:47:30)
- AJ Jackson talks about the company’s transition into rental projects and his involvement in the development of apartment blocks at Shady Grove.
- Innovative Project Challenges (00:49:00)
- AJ Jackson shares the challenges and innovative solutions faced in projects like National Park Seminary, dealing with contamination and legal complexities.
JBG Smith & Washington Housing Initiative
- Transition to Washington Housing Initiative (00:50:30)
- AJ Jackson discusses his transition to the Washington Housing Initiative and the reasons behind leaving his previous role.
- Philosophy Behind the Housing Initiative (00:54:05)
- AJ Jackson explains the philosophy behind the Washington Housing Initiative and its focus on preserving affordability and preventing displacement.
- Organizing the Impact Pool (00:56:05)
- AJ Jackson discusses the organization and sourcing of funds for the impact pool, targeting private capital at scale and engaging with banks, foundations, and high net worth investors.
- Deal Structure and Investment Strategy (00:59:05)
- AJ Jackson explains the deal structure and investment strategy of the Washington Housing Initiative, focusing on investing in high-impact neighborhoods and charging affordable rents.
- The affordability commitments (01:01:15)
- AJ Jackson discusses the structuring of senior debt and property tax reductions to ensure affordability commitments.
- Long term affordability challenge (01:02:19)
- AJ Jackson explains the challenge of creating long-term affordability in a closed-end vehicle and the mezzanine debt strategy.
- Investment underwriting and refinancing (01:03:32)
- AJ Jackson discusses the underwriting of investments, using inflationary rent growth and amortization on the first mortgage for refinancing.
- Impact of pandemic on assets (01:04:30)
- AJ Jackson talks about the impact of the pandemic on assets and the challenges faced due to the policy response in Washington, DC.
- Transition to direct equity investments (01:05:45)
- AJ Jackson explains the shift to direct equity investments and the challenges in raising philanthropic capital.
- Benefits of being a nonprofit owner (01:07:25)
- AJ Jackson discusses the advantages of being a nonprofit owner in terms of tax relief and access to right of first refusal processes.
- Amazon’s impact on housing initiative (01:09:15)
- AJ Jackson explains the impact of Amazon’s involvement in the housing initiative and the formation of the Amazon Housing Equity Fund.
- Environmental impact of preservation (01:11:40)
- AJ Jackson talks about the environmental, time, and cost savings of preservation compared to new construction.
- Corporate engagement in housing (01:14:30)
- AJ Jackson discusses the engagement of corporate entities, particularly tech companies, in addressing housing affordability.
Leo Impact Capital Rationale
- Leo’s role in JBG Smith’s mission (01:17:35)
- AJ Jackson explains how Leo fits into the overall corporate mission of JBG Smith and the internal and external benefits of the workforce housing business.
Affordable Housing and Racial Equity
- Advocacy for affordable housing on a national basis (01:21:20)
- John inquires about AJ Jackson’s involvement in a ULI product council related to affordable housing and advocacy on a national basis.
- The evolution of affordable housing (01:21:50)
- Discussion about the evolution of conventional affordable housing community thinking around preservation and workforce housing.
- Impact of the pandemic on housing (01:23:40)
- The pandemic’s accelerated impact on housing values and the widening affordability gap.
- Racial equity in real estate development (01:27:05)
- Principles for embedding racial equity in real estate development and the business case for racial equity.
- Gentrification and displacement (01:30:45)
- Differentiating gentrification from displacement and examples of equitable housing improvement without social impacts.
Housing Policy and Impact of Local Laws
- Challenges of housing policies in Washington, D.C. (01:35:20)
- Discussion of the challenges posed by housing policies such as TOPA and rent control in Washington, D.C.
- Proposed changes to housing laws (01:38:12)
- The difficulty and political pushback in changing housing laws in the District of Columbia and potential restructuring of existing policies.
- The impact of delays in property transactions (01:42:15)
- Discussion on the negative effects of delays and payments in property transactions on the capital markets and property valuation creation.
- Mission to promote diversity and inclusion (01:42:45)
- AJ Jackson explains the mission to unlock access to opportunity, preserve affordability, and promote economic mobility in high-impact neighborhoods.
- Identifying high-impact neighborhoods (01:43:30)
- Defining high-impact neighborhoods based on educational attainment, poverty levels, transportation access, retail access, and income levels.
- Challenges in real estate organizations (01:47:45)
- Explanation of why large real estate organizations may not have followed JBG Smith’s initiative, citing complexity and lack of understanding of affordable housing.
- Property management and tenant retention (01:49:20)
- Importance of property management in tenant retention and building community for the impact strategy, with a focus on operational complexity and asset management.
Career Learnings
- Engaging with mentors and industry groups (01:56:20)
- The importance of mentorship and joining industry groups to develop confidence, identify mentors, and engage with industry professionals.
- Career wins, losses, and surprises (01:59:20)
- AJ Jackson reflects on the achievements in housing initiatives, public-private partnerships, and the surprising experience during the 9/11 event.
- Response to 9/11 and its impact (02:00:15)
- AJ Jackson’s experience and challenges during the 9/11 event, including decision-making and actions taken as a response to the national emergency.
- The train station incident (02:02:30)
- AJ Jackson recalls a tense encounter at a train station during a terrorist attack.
- Developing decision-making confidence (02:03:40)
- AJ Jackson discusses how his experience at the train station shaped his confidence in decision-making.
- Life priorities and purpose (02:04:00)
- AJ Jackson emphasizes the importance of purpose in aligning life priorities and navigating trade-offs.
- Balancing shifting priorities (02:04:30)
- AJ Jackson highlights the significance of balancing shifting priorities and the role of spousal support.
- Networking and exploring opportunities (02:06:20)
- AJ Jackson reflects on the value of networking and trying different paths to discover one’s lane.
- The impact of togetherness (02:07:00)
- AJ Jackson discusses the significance of unity, abundance mindset, and stoic philosophy in making a positive impact.
- Parting thoughts (02:08:30)
- AJ Jackson expresses gratitude for the interview.
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