Hillpointe Closes $110M Fund Aimed At Workforce Multifamily
The commitment underscores a broader US trend showing that suburban locations are booming targets for multifamily investment.
Real estate development and investment firm Hillpointe has closed a $110 million fund to develop Class A apartments for workforce tenants.
The firm blew past its target of $100 million and plans to develop high-quality housing for workers who earn between 60% and 120% of area median income, the company said in a statement. The fund will provide capital for the firm’s next eight workforce housing projects representing around 2,400 units across the southeastern US.
The commitment underscores a broader US trend showing that suburban locations, particularly across the Sunbelt and secondary markets in the Southeast, are booming targets for multifamily investment. The sector has also stood out as a winner as the impacts of COVID-19 continue to pummel other asset classes.
““Our investment thesis resonates with our investors and tenants alike,” said Kelly Mahoney, co-founder and managing partner of Hillpointe, said in a statement announcing the fund’s closing. “We utilize an integrated development model to bring new housing assets, priced at rents that are comparable to 10+ year old fully occupied housing, in the target market. We are able to offer newly built apartments to renters at comparable rates to much older, inferior product, allowing for rapid stabilization and attractive investment performance across the market cycle.”