Preservation Equity Fund Advisors (PEF Advisors) has announced the closing of an affordable housing preservation fund, achieving its target of $100 million.
WNC Preservation Equity Fund 2 aims to invest in affordable housing developments serving residents earning up to 80% of the area median income and preserve the properties’ affordability during the period of ownership. Markets targeted include high cost-burdened communities in the United States with significant barriers to entry and a significant gap between affordable and market-rate apartment rents, according to PEF Advisors, an affiliate of WNC.
To date, the fund has made seven investments, including 682 units, for a total value of $77 million across California, Colorado, Florida, Maryland, and Washington.
Officials noted that this is the second fund in the organization’s equity strategy. Of the six original investors in the first fund, four reinvested in the latest fund, and PEF Advisors attracted another eight investors for a total of 12 investors in the second fund
“We are extremely pleased to reach our target with this fund after closing out our prototype Fund 1 with $25 million,” said Ann Caruana, president and chief investment officer of PEF Advisors. “The momentum in this space is tremendous, and we’re excited to see such strong interest from institutional capital in helping us preserve affordable housing.”
In total, PEF Advisors has acquired 15 properties with 1,677 units worth $226 million in value.