The Housing Partnership Equity Trust will invest strategically in medium‐ to large‐sized Class B and Class C multifamily properties, including non‐core, secondary real estate markets that are currently at or below‐market rents (average 80% of area median income or less) and are typically unsubsidized, unrestricted rental properties. HPET may also acquire portfolios or notes for similar assets in order to move them into the hands of its members.
Three main asset types have been identified as targets for acquisition by HPET members:
Market Rate/Value-Add Acquisition Opportunities
Mostly unsubsidized market rate units that are currently affordable due to market conditions. If acquired by nonprofit, mission-oriented members, rents will remain at below market rates. The typical asset will be 150-300 unit buildings costing between $10 and $40 million.
Year 15+ Low Income Housing Tax Credit Opportunities
Properties developed by for-profit owners under the Low Income Housing Tax Credits (LIHTC) program that are reaching the end of their 15-year federal compliance period. As many large investors and syndicators seek to wind down these portfolios, opportunities exist for nonprofit owners to acquire and preserve these units as affordable housing.
Asset Disposition Opportunities with the GSEs and Special Servicers
Properties held by special servicers and government-sponsored enterprises, or GSEs, are also available; many have fewer than 150 units and values less than $5 million, a size that is appealing to many HPET members.