Housing Partnership Equity Trust

Maintaining affordable rental housing

Walnut Square

The Housing Partnership Equity Trust (HPET) is the country's first social venture real estate investment trust (REIT) owned by nonprofits and devoted to preserving affordable rental housing. Established in 2012, HPET is a groundbreaking venture that enables members to act with the same speed and flexibility as for-profit buyers looking to purchase rental properties. Using aggregated, raised capital from institutional impact investors, foundations and members, HPET participants can quickly bid on properties without needing to first assemble complex financing packages.

An initial capital raise of $150 million of debt and equity, made up of PRIs from the MacArthur and Ford Foundations, investment capital from Prudential, Citibank, Morgan Stanley, Charles Schwab Bank and HPET members has allowed for the purchase of 13 properties consisting of over 2,750 rental apartment homes affordable to moderate-income households. HPET’s objectives are to acquire rental properties in opportunity areas near job centers with access to good schools, public modes of transportation and community amenities and preserve the affordability of these investment properties through active asset management. Through its mission, HPET seeks to provide a social impact return through three sources: economic return through value creation from the real estate assets acquired, mission return through preserving affordable housing resulting in improved social outcomes and environmental return through the energy efficiency gains of the properties in the portfolio.

HPET is currently looking to raise $50 million of additional common equity and to expand its donor base with investments from a new class of social impact investors. By 2020, HPET anticipates its portfolio to grow to over 12,000 apartment homes with a real estate value in excess of $1 billion.

For more information, contact Nancy Rase (rase@hpequitytrust.com).