Prana Receives $50M to Acquire Affordable Multifamily Housing

NEW YORK CITY—Prana Investments received $50 million of preferred equity investment from Pembrook Capital Management. The financing will allow Prana to continue to acquire additional workforce housing in Los Angeles and in New York City. Founded in 1982, Prana invests in rent-regulated multifamily assets in both of those cities, as well as in San Francisco, where the company is based.

“We’re pleased to structure an investment that will improve the sponsor’s portfolio as well as provide funding to acquire additional affordable housing units on both coasts,” says Stuart J. Boesky, Pembrook’s founder and CEO. He notes both Los Angeles and New York City have critical shortages of affordable multifamily housing, and are cities where Pembrook expects continued high demand for quality, reasonably priced multifamily properties.

“It is interesting to note that approximately 85% of all new multifamily properties are luxury Class A product and very little new housing is being produced for the underserved affordable market,” says Boesky. He opines that affordable housing promotes neighborhood stability and helps families thrive.

“As a firm, we’re pleased to help facilitate multifamily redevelopment that creates vibrant communities and contributes to the improvement of local economies nationwide.” Pembrook’s investments have totaled more than $1.4 billion.

As an interesting side note, Stuart Boesky is a first cousin of Ivan Boesky, the investment banker who gained notoriety being convicted of insider trading in the 1980s. In a September 2012 article in The New York Times, Stuart noted he was not close to Ivan. In the Q&A with reporter Vivian Marino, Stuart said of the other Boesky: “I did meet with him once at his office when I first moved to New York, and it’s the only time that I’ve ever seen him face to face. That was almost 30 years ago. Here’s a guy that never helped me, but the association is not all that helpful.”