Home Finance PEF Advisors Closes $100MM Affordable Housing Investment Fund

PEF Advisors Closes $100MM Affordable Housing Investment Fund

Bailard, Bailard Multifamily Fund

IRVINE, Calif. – June 7, 2022 – Preservation Equity Fund Advisors, LLC (PEF Advisors), a real estate private equity group focused on preserving existing affordable housing in high-cost markets, has closed its WNC Preservation Equity Fund 2, L.P. It achieved its target of $100 million and is the second fund of the organization’s equity fund strategy. 

The fund’s objective is to invest in affordable housing apartment communities serving residents making 80% of the area median income (AMI) or less and preserve 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.

To date, the fund has made seven investments including 682 units for a total value of $77 million across five states including California, Washington, Colorado, Maryland, and Florida. Of the original six investors in Fund 1, four reinvested in Fund 2 and PEF Advisors attracted another eight investors new to the firm’s private equity strategy for a total of 12 investors in Fund 2.

“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.

About Preservation Equity Fund Advisors, LLC

Since 2017, Preservation Equity Fund Advisors, LLC (PEF Advisors) has focused on acquiring and preserving existing affordable housing in high-cost markets through private equity funding. PEF Advisors is an affiliate of WNC. PEF Advisors has access to WNC’s more than 50 years’ experience in acquiring more than 1,650 properties representing $13.7 billion in affordable housing nationwide, including through tax credit and/or preservation equity strategies.