Enterprise Closes $110 Million Equity Fund to Preserve Thousands of Affordable Homes While Delivering Competitive Returns
COLUMBIA, Md. (June 14, 2018) – Enterprise Community Investment Inc.’s (Enterprise) third conventional real estate equity fund (Fund III) is closed to new investment after being oversubscribed by investors and raising a total of $110 million. Fund III is expected to preserve more than 5,000 affordable and workforce homes while delivering attractive risk-adjusted returns to socially minded investors.
From its launch in 2013, Fund III and prior funds from Enterprise have filled a crucial need in communities across the country: investing real estate equity through joint-venture partnerships with proven owner/operators to preserve and improve affordable and workforce housing. Its investments ensure the long-term affordability of existing multifamily housing developments and improve residents’ quality of life through thoughtful upgrades and attentive management.
The funds have also provided stable financial returns through Enterprise’s balanced and responsible approach to investing and asset management. Investors have recognized the economic benefits of investing in affordable housing, including reduced volatility, lower risk, predictable underwriting and reliable returns, in addition to the social returns of stronger, healthier, more economically mobile communities.
“Our series of conventional real estate equity funds has been a resounding success for communities and investors,” said Charles Werhane, president and CEO, Enterprise Community Investment, Inc. “Its support for the preservation of affordable housing has benefitted thousands of residents across 13 states, and investors have received both social and financial returns.”
Fund III is the latest in a series of similar funds that Enterprise has sponsored, and a fourth is expected later this year. Together the funds have supported nearly $750 million of acquisition activity, preserving more than 8,000 affordable and workforce homes in 65 communities across the country. Fund III will continue to make new investments to help meet the growing need for quality homes connected to good jobs, education, transit and health care.
The shortage of affordable homes continues to grow across the U.S. More than one in four renters – over 11 million households – pay more than 50 percent of their income in rent. Finding an affordable home is an additional challenge: for every 100 extremely low-income families across the country, there are only 35 homes that would be affordable.