ImpactAlpha, November 3 — Los Angeles-based affordable housing developer, Lincoln Avenue Capital, has secured most of the common equity in the real estate investment trust, which works with nonprofit developers to preserve unsubsidized naturally occurring affordable housing, or NOAH.
Washington, D.C.-based HPET has provided more than a dozen affordable housing and community development nonprofits with badly needed equity capital to purchase and preserve approximately 3,300 units in gentrifying neighborhoods.
Lincoln Avenue committed to provide up to $200 million per year for projects with HPET’s partners, which will retain a 7.5% ownership stake in the fund. “The opportunity is to acquire and preserve more housing in high-cost, high-demand communities all over the country with immediate capital from Lincoln Avenue,” HPET’s Anne McCulloch told ImpactAlpha.
HPET launched in 2013 with $100 million from Citi, Morgan Stanley, Prudential Financial and the Ford and MacArthur foundations.
A $12.5 million liquidity facility from MacArthur Foundation in 2016 helped bring in an additional $50 million from Citibank, Schwab and Morgan Stanley. HPET has made few investments since exhausting its capital two years ago, McCulloch said.