PEF Advisors Closes $100m Affordable Housing Fund

Jun 8, 2022 | News

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 $100m 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.

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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.

Source: Global Newswire

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