Hunt Cos. has closed on an agreement to acquire a minority interest in Pennrose Properties, one of the nation's largest owners and developers of affordable housing.
As part of this transaction, Hunt will secure a long-term interest in Pennrose’s future development activities while Pennrose assumes responsibility and oversight for a substantial portfolio of projects in Hunt’s pipeline. Terms of the deal were not released.
“This agreement expands the working relationship between Hunt and Pennrose,” said Hunt CEO Chris Hunt in a statement. “We are looking forward to combining our abilities and expertise to further grow our portfolios and continue to serve our partners in mixed-income housing projects.”
Pennrose and Hunt are both privately held firms with expertise in multifamily affordable and mixed-use public-private partnership development projects across the country. Collectively, the firms, including their affiliate companies, are responsible for more than 300 mixed-finance/mixed-income projects touching more than 40,000 units of housing across the United States.
Hunt, a major market-rate housing firm that has also been active in affordable housing, and Pennrose will each continue development activities on all current projects as negotiated with entities across the United States. The partnership will look to apply its combined capabilities on new opportunities.
“This new partnership between Pennrose and Hunt will allow us to maintain focus on the relationships and projects already in our pipeline and support expanding the Pennrose mission,” said Richard K. Barnhart, chairman and CEO of Philadelphia-based Pennrose. “Together, Hunt and Pennrose will continue to deliver the expertise, vision, and operational excellence, which transform communities.”
Pennrose ranked No. 7 on Affordable Housing Finance’s list of Top 50 developers this year after starting construction on 929 affordable housing units last year. The firm was also No. 21 on AHF’s list of top owners with 12,132 affordable units in 188 properties at the beginning of the year.