WINTER PARK, Fla., March 2020 – Hillpointe, LLC, a fully integrated real estate development and investment firm focused on workforce housing in the southeastern United States, today announced the closing of Hillpointe Workforce Housing Partnership I, LP at $60 million. Raised in seven months, the oversubscribed fund is focused on the development of Class A quality apartments competitively priced for workforce tenants.
“The fund will allow for development of the next five workforce housing projects in our pipeline representing approximately $170million of total asset value and approximately 1,400 workforce housing units in the southeastern United States,” noted Steven Campisi, Co-Founder and Managing Partner of Hillpointe. “Hillpointe’s successful fundraise and expanding investor base marks a significant milestone for our company, and we are pleased with the significant level of interest from our investors.”
Hillpointe believes that the US workforce housing sector exhibits a significant supply/demand imbalance. Of the approximately 320,000 multifamily units delivered in each of the last few years, the workforce housing component represented only ~10% units of new construction. Meanwhile supply lost to general obsolescence removes an estimated 100,000+ units per year. Due to the vast undersupply of workforce housing, Hillpointe sees an opportunity to develop high quality, newly built housing targeted at renters who earn between 60% and 120% of area median income.
Hillpointe develops garden-style multifamily targeted at the ~13.5 million “middle income” U.S. renter households. Typical tenants in workforce housing are medical personnel, resort area workers, retail workers, distribution facility workers, and public employees (teachers, firemen, policemen, etc.) Workforce housing does not include government-sponsored affordable housing, which typically caters to families earning below 60% of AMI.
Hillpointe Workforce Housing Partnership I, LP exceeded its $40 million target and achieved its hard cap of $60 million. There was no placement agent for the fund and Greenberg Traurig, P.A. served as legal counsel.