PEF Advisors Investing in Affordable Housing's 'Momentum'
Firm closes $100 million fund targeting housing in high-cost markets.
Momentum in the affordable housing sector has PEF Advisors’ president and chief investment officer Ann Caruana excited. So much so that her firm this week announced it had met its fund’s goal of $100 million for the organization’s second fund in its equity fund strategy.
“[Interest] has been tremendous [with] institutional capital in helping us preserve affordable housing,” she said in a prepared statement.
PEF focuses on affordable housing in high-cost markets. Its prototype Fund 1 closed with $25 million.
The objective of its WNC Preservation Equity Fund 2, L.P. is to support affordable housing apartment communities serving residents making 80% of the area median income (AMI) or less and preserve affordability during the period of ownership.
These markets tend to have significant barriers to entry and a significant gap between affordable and market rate apartment rents.
The fund has made seven investments including 682 units for a total value of $77 million across five states including California, Washington, Colorado, Maryland and Florida.
Of the original six investors in Fund 1, four reinvested in Fund 2 and PEF Advisors attracted another eight investors new to the firm’s private equity strategy for a total of 12 investors in Fund 2.
In total, PEF Advisors has acquired 15 properties with 1,677 units worth $226 million in value, managed through tax credit and/or preservation equity strategies.