REAL ESTATE INVESTMENT

Lincoln Avenue Capital Acquires Majority Stake in HPET as part of a Landmark National Partnership to Create Affordable Housing

Lincoln Avenue Capital | November 02, 2021

Lincoln Avenue Capital, a leading, mission-driven investor in and developer of affordable housing, has signed an agreement to acquire the majority stake in a social purpose real estate investment fund, the Housing Partnership Equity Trust (HPET), which invests in affordable housing across the United States. The transition is expected to be complete by the end of this year, after which Lincoln Avenue Capital will serve as one of the largest, single private investors in affordable housing.

HPET was originally founded nine years ago by major Wall Street banks, prominent foundations, and nonprofit housing organizations that came together to pioneer an innovative approach to affordable housing investment and preservation. Until now, HPET has been principally owned by some of the nation's largest and most respected not-for-profit developers and operators of affordable and workforce housing for low- and moderate-income individuals and families. In partnership with HPET nonprofits, Lincoln Avenue Capital plans to purchase at least $150 million annually in workforce and affordable housing to expand HPET's investments.

The company will continue HPET's traditional focus on largely unsubsidized affordable housing (what is also referred to as "naturally occurring affordable housing" or "NOAH"). Their rents are lower than those of the area's housing market.

"Building and preserving affordable housing is one of the most important social causes of our time, HPET has pioneered and proven a powerful model for bringing together private and nonprofit partners to develop and sustain affordable and workforce housing that strengthens communities. Lincoln Avenue Capital is well equipped to build on this success. We are delighted to be partnering with leading nonprofit and philanthropic organizations that share our mission to increase HPET's impact across the country."

- Jeremy Bronfman, CEO and founder of Lincoln Avenue Capital.

Established in 2012, HPET was built on an idea first proposed by the Housing Partnership Network (HPN), a collaborative of 100 leading affordable housing and community development nonprofits, and other housing advocates. The group advanced the idea that more private capital would be attracted into affordable housing if a real estate investment trust (REIT) could be formed with some of the nation's largest and most respected nonprofit developers and operators of affordable multifamily housing. To put the concept into action, HPN and its members worked with the John D. and Catherine T. MacArthur Foundation and other major investors including Citibank, Charles Schwab Bank, the Ford Foundation, Prudential, and Morgan Stanley Bank. Today, HPET serves nearly 3,000 households in seven U.S. states.

"Expanding access to safe, affordable homes is key to our country's fight against inequality and racial injustice, We are proud to have supported HPET's groundbreaking work since inception and excited that Lincoln Avenue's partnership with HPET's leading nonprofit housing organizations promises even greater scale and impact in the years ahead."

- Debra Schwartz, MacArthur's Managing Director for Impact Investments.

Lincoln Avenue Capital is expected to close on the purchase by the end of 2021. It will acquire a majority interest in HPET, which it will own alongside the other institutional investors, including the MacArthur Foundation. HPET's nonprofit partners will retain ownership of 7.5 percent of the company. Other investment partners include Prudential Impact Investments Private Equity LLC, Citibank, N.A., Morgan Stanley Bank, N.A., and Charles Schwab Bank, SSB. Under Lincoln Avenue Capital's leadership, HPET will continue to aggressively seek out new housing investment opportunities and additional private capital. Beekman Advisors acted as investment banker for HPET in the transaction.

About LAC:
Lincoln Avenue Capital is one of the nation's fastest-growing developers and investors of affordable housing, providing high-quality, sustainable homes for low-income individuals, seniors, and families nationwide. LAC is a mission-driven organization with a portfolio that includes 88+ properties, comprising 15,000+ units and serving more than 43,000 residents across 14 states.

About HPET:
Housing Partnership Equity Trust (HPET) is a national, social-purpose real estate investment fund created by nonprofits to raise capital for affordable housing. HPET collaborates with its partners to acquire and preserve affordable rental housing in opportunity neighborhoods with the components critical to household success. HPET's nonprofit members are AHC Inc., Aeon, BRIDGE Housing Corporation, Chicanos Por La Causa, Inc., Eden Housing, Inc., Enterprise Community Development, Inc., Hispanic Housing Development Corporation, Homes for America, Housing Partnership Network, LINC Housing Corporation, Mercy Housing, Nevada HAND, Inc., NHP Foundation, NHT Communities, and POAH.

Spotlight

WE HAD A LOT TO CELEBRATE OVER THE PAST YEAR grand openings, groundbreakings and Eden’s 45th Anniversary. But with more than 17,000 households now on our waiting list, it’s imperative that we find ways to do more with less and to invest in new concepts that will help us continue to improve lives, buildco mmunities and preserve affordable homes.

Spotlight

WE HAD A LOT TO CELEBRATE OVER THE PAST YEAR grand openings, groundbreakings and Eden’s 45th Anniversary. But with more than 17,000 households now on our waiting list, it’s imperative that we find ways to do more with less and to invest in new concepts that will help us continue to improve lives, buildco mmunities and preserve affordable homes.

Related News

REAL ESTATE INVESTMENT

StepStone Real Estate to Make a Significant Investment in Anchor Health Properties

Anchor Health Propertiesc | September 27, 2022

StepStone Real Estate, the real estate arm of private markets investment firm StepStone Group Inc., has made a significant strategic equity investment in Anchor Health Properties (Anchor), a best-in-class owner, manager, and developer of healthcare real estate across the United States. The investment was made through a separate account managed by SRE on behalf of a large international pension fund client. As of June 30, 2022, SRE oversaw US$168 billion in global real estate capital allocations for its limited partners and clients. Anchor intends to utilize the investment to fund future platform growth, as well as to enhance its balance sheet and credit reserves. Anchor Health Properties continues to be the majority owner and managing member of the operating platform. "The commitment of one of the world's largest institutional investors to partner with the Anchor platform will help us manage and accelerate future growth in the coming years, We are confident that Anchor and SRE share a similar cultural fit, long-term ownership mentality, appropriate risk-adjusted decision making, and a vision to facilitate best-in-class healthcare services through our healthcare facilities across the United States. We are excited for this next chapter of Anchor's growth as we continue to 'pursue better healthcare through real estate solutions' across our three major service lines." -Ben Ochs, Anchor's Chief Executive Officer James Schmid, the firm's Chief Investment Officer, noted, In early 2022, Anchor evaluated the potential to enhance the firm's corporate balance sheet and prepare for the next stage of platform growth. We had the opportunity to meet with a wide range of equity and debt capital investors across the globe and evaluate the potential to partner with strategic growth capital as we continue to expand our development, management, and investment reach and capabilities. We anticipate there will be increased investment and development opportunities in the coming months and years, and we are well positioned to take advantage to drive outsized returns for investors as those opportunities arise. Further, we are excited to benefit from SRE's insights into global capital flows and dynamic approaches to business execution. John Waters, SRE Partner and Head of Investments added, We got to know Anchor while we were evaluating best-in-class partners with which to make a strategic investment in the US healthcare real estate sector. We believe that our recapitalization of Anchor will help them to achieve their growth objectives and significantly enhance their operating platform going forward. Ted Flagg, Senior Managing Director for JLL Securities, facilitated a targeted investor process to help Anchor evaluate equity and debt options for a platform investment over the course of 2022. Mr. Flagg added, JLL Securities is pleased to have represented Anchor to find the right investor for long-term platform growth. After considering a meaningful number of different and attractive proposals from domestic and international investors, JLL worked with Anchor to determine the best strategic fit with a partner who shared a similar approach to investing, including a long-term investment mindset and a continued commitment to providing exceptional services for healthcare real estate. Anchor Health Properties was advised on legal elements by Goodwin & Proctor LLP during the transaction process. SRE was advised by Latham & Watkins LLP. Jones Lang LaSalle Securities provided financial advisory services to Anchor Health Properties for the transaction. About Anchor Health Properties Anchor Health Properties is a national, full-service healthcare real estate development, management, and investment firm serving investors and health systems. Leveraging our collective experience and resources, our nimble, and thoughtful team of professionals develop and deliver tailored, client-specific solutions to respond to today's healthcare challenges – thinking outside the "medical office box." With more than $1.5B of completed development projects, nearly 9M square feet under management, and nearly $3B invested in stabilized healthcare facilities, Anchor continues to create a better healthcare experience for patients and a competitive edge for our clients. Anchor maintains multiple offices nationwide and features more than 100 professionals in its ranks. Healthcare today calls not only for new and more efficient ways of delivering healthcare services, but also a different kind of healthcare real estate company.

Read More

REAL ESTATE INVESTMENT

Doma’s Technology-First Title Solution Enables Financial Freedom for Point Home Equity Customers

Doma Holdings | July 28, 2022

Doma Holdings, Inc. a leading force for disruptive change in the real estate industry, today announced that Point, a home equity financial platform, is leveraging the Doma Intelligence platform to quickly scale its operations and provide more financial freedom to its customers. Through Doma’s machine learning-driven Intelligence Platform, Point is experiencing some of the fastest title commitments and customer service responses in the industry, further matching Point’s goal for growth and customer satisfaction. Prior to working with Doma, title clear-to-close was a source of delays for Point and its customers. As a company focused on scaling its Home Equity Investment (HEI) offering, Point needed a like-minded, tech-forward partner to enable its growth without sacrificing the quality of customer service. Since onboarding with Doma, Point has increased its order volume by approximately 200 percent across 17 states in only four months. Further, Point has received title clearance in under a minute in over 70 percent of its orders. “Previously, getting title clear-to-close was a common source of delays for us, which ultimately jeopardized the closing dates, causing angst for our affected customers,” said Eddie Lim, CEO and co-founder at Point. “Since partnering with Doma, we have seen both a reduction in delays related to title and an increase in positive feedback from homeowners about the smooth process—a win-win for everyone involved.” Using Doma’s proprietary, machine learning technology backed by a first-class operations team, Point was able to improve many of its key operational metrics, including processing times for title commitments, time to receive clear to close for investments and customer service responses. As a result, Point is able to provide its customers with a different way to access to their home equity, putting thousands of homeowners on a path towards financial independence. “It’s inspiring to see how Point has implemented Doma’s technology to enable homeowners to access their home equity, We look forward to continuing to support Point’s rapid growth and our shared commitment to providing homeowners with an instant and frictionless closing experience.” Max Simkoff, Doma CEO About Doma Doma is a real estate technology company that is disrupting a century-old industry by building an instant and frictionless home closing experience for buyers and sellers. Doma uses proprietary machine intelligence technology and deep human expertise to create a vastly more simple and affordable experience for everyone involved in a residential real estate transaction, including current and prospective homeowners, mortgage lenders, title agents, and real estate professionals. With Doma, what used to take days can now be done in minutes, replacing an arcane and cumbersome process with a digital experience designed for today's world. About Point Point is a home equity platform that makes home wealth more valuable for everyone. With a Home Equity Investment (HEI) from Point, homeowners can unlock their home equity, enabling them to eliminate debt, get through periods of financial hardship, and diversify their wealth. For investors, Point provides access to a previously untapped asset class in the residential real estate space. Founded in 2015 by Eddie Lim, Eoin Matthews and Alex Rampell, Point is backed by top investors including Westcap, Andreessen Horowitz, Ribbit Capital, Greylock Partners, Bloomberg Beta, Redwood Trust, Atalaya Capital Management, Kingsbridge Wealth Management, Deer Park Road Management, The Palisades Group, Alpaca VC, and Prudential. To date, Point has raised over $170 million in equity capital. The company is headquartered in Palo Alto, CA.

Read More

REAL ESTATE INVESTMENT

HINES BECOMES FIRST COMMERCIAL REAL ESTATE FIRM TO PARTNER GLOBALLY WITH FORBES TRAVEL GUIDE

Hines | September 23, 2022

Hines, the global real estate investment, development, and property manager, today announced a partnership with Forbes Travel Guide to define five-star hospitality standards at Hines buildings, making it the first commercial real estate firm to work with Forbes Travel Guide on a global scale. Hines and Forbes Travel Guide will co-develop custom service standards for the firm's 415 global office and multi-family properties, and emphasize how hospitality-inspired service can bring greater value to tenants and residents. As commercial real estate standards rapidly change, and people seek more collaborative, creative, and curated spaces, the partnership signifies Hines' commitment to creating a consistent customer experience that scales with the firm and brings the company's culture to life. "Real estate owners and managers have typically prioritized asset value over experience. We're seeing the value in both ROI and ROE, or return on experience, and see it as the most important metric of tomorrow, Enhanced customer experience driven by five-star standards not only increases asset value, but helps people feel more valued, connected, and inspired in our spaces. We selected Forbes Travel Guide because they are the trusted partner of the world's leading hospitality brands and share our passion for creating meaningful experiences for clients." -Whitney Burns, vice president of global client strategy at Hines In addition to the co-created service standards, the partnership between Hines and Forbes Travel Guide will include a substantive training program encompassing both in-person training customized to the Hines portfolio and scalable online training. The new service standards will be implemented in 2023. Creator of the original Five-Star rating system, Forbes Travel Guide is the only independent, global rating agency for the hospitality industry. With over 60 years in the hospitality sector, Forbes Travel Guide is the global authority on five-star service, providing world-class, professional development resources to many of the world's most beloved hospitality brands including the Mandarin Oriental Hotel Group, Marriott International, Hilton Worldwide Hotels & Resorts, as well as other organizations that make exceptional service a pillar of their business model. Now, more than ever before, people are emphasizing the experience and purpose behind where they choose to spend their time. Our partnership with Hines is a testament to the firm's commitment to innovation and placemaking and signifies a new industry standard in the operation of commercial real estate, said Hermann Elger, Forbes Travel Guide CEO. About Hines Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 285 cities in 28 countries. Hines oversees investment assets under management totaling approximately $90.3 billion¹. In addition, Hines provides third-party property-level services to 373 properties totaling 114.2 million square feet. Historically, Hines has developed, redeveloped or acquired approximately 1,530 properties, totaling over 511 million square feet. The firm currently has more than 198 developments underway around the world. With extensive experience in investments across the risk spectrum and all property types, and a foundational commitment to ESG, Hines is one of the largest and most-respected real estate organizations in the world. About Forbes Travel Guide Forbes Travel Guide, the global authority on genuine Five-Star service, provides world-class professional services to the hospitality industry and other service-oriented businesses such as luxury retail, residential, healthcare and private clubs through bespoke training solutions, evaluation services and custom service standards. Started as Mobil Travel Guide in 1958, the company created the first Five-Star rating system in the United States. Today, in addition to providing professional services, FTG is the only independent, global rating system for luxury hotels, restaurants and spas. FTG's prestigious annual Star Awards can only be earned through the company's objective, in-person inspection process.

Read More