REAL ESTATE INVESTMENT
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.
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.
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.
REAL ESTATE INVESTMENT
Dynamic City Capital | February 08, 2022
Dynamic City Capital (DCC), a Utah-based real estate investment firm focused on acquiring and developing premium-branded hotels, announced the acquisition of the Hyatt Place San Francisco Downtown. The transaction was completed on January 28 and is the company's first acquisition of 2022. The hotel's premium corner location is less than a half-block from Oracle Park, home of Major League Baseball's San Francisco Giants.
The Hyatt Place San Francisco Downtown is an excellent addition to our portfolio. The brand, market, and specific location fit our strategy to acquire best-in-class hotels in prime markets, We are thrilled to make this acquisition and look forward to our 2022 pipeline of opportunities."
Ryan Phelps, DCC's Chief Investment Officer.
The twelve-story hotel features 230 guest rooms, 4,300 square feet of retail space, a lobby bar, and a 24/7 market. The Hyatt Place is between the lively South of Market (SoMa) and Mission Bay neighborhoods known for world-class dining, museums, and business. Nearly adjacent to Oracle Park, it is also within walking distance of Chase Arena, home to the NBA's Golden State Warriors, and the Moscone Convention Center. In addition, public transportation, including light rail and Caltrain, is within a city block, providing access to all that San Francisco offers. The hotel opened in January 2019.
This purchase early in 2022 continues the pattern of dynamic growth exhibited by the acquisition of seven properties across the US in 2021.
About Dynamic City Capital
Dynamic City Capital (DCC) is a privately held real estate investment and asset-management firm with three decades of experience in hospitality. During its 30+ year history, DCC has placed hundreds of millions of dollars of capital on behalf of its investment partners. After opening the first Marriott® franchised hotel in the state of Utah in 1991, DCC has been involved in the development, acquisition, and management of hotel assets throughout the United States, representing the premium-branded hotel families of Hilton®, Hyatt, IHG®, and Marriott®.
Fathom Holdings, Inc. | July 02, 2021
Fathom Holdings Inc., is a national, technology-driven, end-to-end real estate services platform integrating residential brokerage, mortgage, title, insurance, and SaaS offerings for brokerages and agents. Fathom announced today that it had completed the acquisition of Epic Realty through its wholly-owned subsidiary, Fathom Realty Holdings, LLC. The transaction's terms were not revealed.
Epic is a fast-growing regional agency based in Meridian, Idaho, near Boise, that offers full-service residential real estate services to buyers and sellers. Fathom is replacing Epic as the company's name.
McCloud and Hodson will oversee Fathom's brokerage activities in Idaho on a daily basis.
Fathom Holdings, Inc.
Fathom Holdings Inc. is a national, technology-driven real estate services platform that connects residential brokerage, mortgage, title, insurance, and SaaS products to brokerages and agents via the use of its cloud-based software, intelliAgent. Fathom Realty, Dagley Insurance, Encompass Lending, intelliAgent, Real Results, and Verus Title are among the company's brands.