US real estate investment firm Hillpointe has raised $510m (鈧�468.2m) for its latest workforce housing investment fund.
The manager said the capital raised for Hillpointe Workforce Housing Partnership IV (Fund IV) exceeded its $500m target to achieve its hard cap.
Fund IV is expected to allow for the development of the next 25 to 30 workforce housing projects in Hillpointe鈥檚 pipeline across the Sun Belt states.
Workforce housing is generally defined as housing that is affordable to households earning between 60% and 120% of area median income, or about $45,000 to $85,000 annually.
Steven Campisi, co-founder and managing partner of Hillpointe, said: 鈥淗illpointe鈥檚 successful fundraise and the expansion of our investor base marks yet another significant milestone for our growing company and furthers our mission to deliver best-in-class new apartments that are competitively priced for workforce tenants.
鈥淎s with prior funds, Fund IV seeks to provide investors with the opportunity to benefit from Hillpointe鈥檚 fully integrated development platform, and our owner-operator business model, to generate attractive risk-adjusted returns. We believe our fully integrated structure is the key to our construction cost advantage and successful execution at initially budgeted cost.鈥�
Kelly Mahoney, co-founder and managing partner of Hillpointe, said: 鈥淲e have a wealth of great sites in our pipeline, our construction process is streamlined, and our supply chain has been optimised.
鈥淚n addition, we have further expanded our direct-to-manufacturer supply chain, both domestically and internationally. We look to continue to increase our competitive advantage versus our peers and believe that we are well positioned to execute on our forward pipeline of 25 to 30 workforce housing projects.鈥�
Jeff Goll, managing director and head of capital markets at Hillpointe, said: 鈥淔und IV was oversubscribed, surpassing its initial fundraising target, and has garnered tremendous support from both new and existing investors.
鈥淲e believe the successful raise underscores institutional capital鈥檚 strengthening demand for workforce housing and continued confidence in Hillpointe鈥檚 development and construction expertise.鈥�
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