Printer Friendly

Foundation partners form social-purpose REIT.

A NEWLY FORMED PARTNERSHIP of two major philanthropic foundations--the John D. and Catherine T. MacArthur Foundation and the Ford Foundation--and three Wall Street titans--Citi, Morgan Stanley, Prudential Financial Inc.--has raised $1.00 million.

They have also established an equity trust that will operate as a REIT and partner with members to buy unsubsidized multifamily housing on the open market. The Housing Partnership Equity Trust (HPET) was formed as a social-purpose REIT.

Headquartered in Washington, D.C., it provides a ready source of low-cost, long-term capital, enabling a dozen mission-driven nonprofits to acquire apartment communities for the purpose of providing homes for households with modest incomes. Its first transaction closed earlier this month in Aurora, Ill.

HPET Chief Executive Drew Ades comments, "The Housing Partnership Equity Trust demonstrates a new approach to funding affordable housing--one that will streamline the capital-raising process for acquiring affordable housing units and sharply reduce transaction costs as well as the time it takes to close on a transaction." Before joining HEPT, Ades was involved in the multifamily housing business at Fannie Mae.

--NAA Industry Insider
COPYRIGHT 2013 National Apartment Association
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2013 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Development
Publication:Units
Date:Jun 1, 2013
Words:180
Previous Article:Regional vice presidents and committee, council and task force chairs.
Next Article:Denver has cutting-edge blend of transportation, housing.
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters