Housing Partnership Equity Trust REIT Closes $50 Million Capital Raise with $10 Million Investment from Charles Schwab Bank
(WASHINGTON, June 2016) – The Housing Partnership Equity Trust (HPET), a social-purpose real estate investment trust, announces the closing of $10 million of preferred equity from Charles Schwab Bank. The Schwab investment completes a $50 million equity raise that included investments from Citibank and Morgan Stanley. The MacArthur Foundation provided a liquidity facility that enabled this private equity investment and with this new capital, HPET is well positioned to increase its acquisitions of multifamily properties that achieve its mission to serve low and moderate income tenants while creating long term value for its investors. HPET has successfully closed on $85 million of equity investments to date.
“Charles Schwab Bank’s investment demonstrates our commitment to accelerate impact,” said Michael Solomon, Vice President at Charles Schwab Bank, “and Schwab believes HPET can continue to play a critical role in preserving our affordable housing across the country.”
HPET was launched in 2013 by leading nonprofit housing and community development organizations, and sponsored by the Housing Partnership Network, as a vehicle to attract new sources of capital to combat the growing affordable housing crisis. HPET buys and preserves apartment buildings in high-opportunity neighborhoods and keeps those units affordable for low-and moderate-income families and persons on fixed incomes.
“The MacArthur Foundation’s facility is part of its commitment to foster a next generation of innovative impact investment platforms that activate more capital for deep impact,” said Debra Schwartz, Managing Director, Impact Investments at the John D. and Catherine T. MacArthur Foundation, “we believe in the HPET mission and are pleased that our investment can provide easier, more suitable and more liquid options for a growing and diverse array of investors.”
As an impact investment vehicle, HPET offers investors a triple bottom line return, through the preservation of affordable housing, by providing an attractive risk adjusted return, and through the reduction of the carbon footprint of the properties in which it invests. HPET’s existing partners have developed over 65,000 apartments with a market value in excess of $6 Billion, predominantly for low and moderate income families.
“We couldn’t be more excited to add Charles Schwab Bank as an investor,” said Drew Ades, HPET’s President and CEO, “their investment provides further validation of our triple bottom line business plan.”
Housing Partnership Equity Trust REIT I, LLC is a social-purpose real estate investment trust created in partnership with 12 mission-driven nonprofits, and sponsored by the Housing Partnership Network. HPET’s nonprofit partners operate in 30 states and Washington, D.C. HPET works with its partners to acquire market affordable rental housing in opportunity neighborhoods. HPET investors include Citi, Morgan Stanley, Prudential Financial, Inc., Charles Schwab Bank, the John D. and Catherine T. MacArthur Foundation, the Ford Foundation and the Housing Partnership Network.
The 12 nonprofit members of the Equity Trust, who are also investors, are: AHC Inc. (Arlington, VA); BRIDGE Housing Corporation (San Francisco, CA); Chicanos Por La Causa, Inc. (Phoenix, AZ); Community Preservation and Development Corporation (Silver Spring, MD); Eden Housing, Inc. (Hayward, CA); Hispanic Housing Development Corporation (Chicago, IL); Homes for America, Inc. (Annapolis, MD); LINC Housing Corporation (Long Beach, CA); Mercy Housing (Denver, CO); Nevada HAND, Inc. (Las Vegas, NV); The NHP Foundation (New York, NY); and National Housing Trust/Enterprise Preservation Corporation (Washington, DC). To learn more, visit.
Housing Partnership Network is an award-winning business collaborative of 100 of the nation’s leading affordable housing and community development nonprofits. Creating private sector partnerships and enterprises that achieve ambitious social missions, HPN and its member organizations work together to scale innovation and impact, helping millions of people gain access to affordable homes and thriving communities that offer economic opportunity and an enhanced quality of life. With over $6 billion in collective assets, this robust group of high capacity nonprofits is responsible for as much as 20% of the annual affordable housing production and community development financing in the nation. Member organizations deliver “best in class” performance and outcomes for their customers and communities at the local and regional level in almost all states and major metropolitan markets. In 2013, HPN received a MacArthur Foundation Award for Creative and Effective Institutions, and a Wells Fargo NEXT Opportunity Award in recognition of its ongoing leadership and innovation in affordable housing and community development. To learn more, visit www.housingpartnership.net.