WINTER PARK, Fla., Oct. 26, 2021 (GLOBE NEWSWIRE) — Hillpointe, LLC, a fully integrated real estate development and investment firm focused on the development of market rate workforce housing in the Southeastern United States, announced today the closing of Hillpointe Workforce Housing Partnership III, LP (“Fund III”) at its hard cap of $190 million. Fund III is expected to allow for the development of Hillpointe’s next twelve workforce housing projects, representing approximately $500 million of total asset value and 3,500 workforce housing units across the Southeastern United States.
“Hillpointe’s successful fundraise and expanding investor base marks another meaningful milestone for our growing company. As with our earlier funds, Fund III seeks to capitalize on Hillpointe’s vertically integrated platform to deliver high quality, newly constructed multifamily units at rents attainable for median income earners,” noted Steven Campisi, Co-Founder and Managing Partner of Hillpointe. “Job growth and population growth in the Southeast, as well as the deterioration of housing affordability across the United States, continues to drive the need for our product and support our investment thesis.”
Hillpointe believes that the U.S. workforce housing sector exhibits a meaningful supply/demand imbalance. Workforce housing is generally defined as housing that is affordable to households earning between 60% and 120% of area median income. Due to rising construction costs, the majority of newly developed rental units are unattainable for median income earners, with the workforce housing component representing only ~10% of newly developed units. When combined with general obsolescence, which removes an estimated 100,000+ units per year, there is an acute shortage of workforce housing.
“We believe the successful raise of Fund III underscores institutional capital’s strengthening demand for workforce housing and continued confidence in Hillpointe’s development and construction expertise,” said Kelly Mahoney, Co-Founder and Managing Partner of Hillpointe. “The ability to deliver new multifamily communities at target rental rates ranging from $1.00 and $1.20 per square foot offers a unique competitive advantage versus other real estate investments.”
“Fund III was oversubscribed and received significant interest from both new and existing investors, with participation from endowments, insurance companies, family offices and multi-family offices. We are grateful for the continued trust that our investors have placed in us, and we are highly committed to delivering outstanding results,” commented Jeff Goll, Managing Director and Head of Capital Markets.
The Hillpointe Workforce Housing Partnership III, LP exceeded its $175 million target and achieved its hard cap of $190 million. There was no placement agent for the Fund. Greenberg Traurig, P.A. served as legal counsel.
Hillpointe, LLC is a fully integrated real estate development and investment management firm that boasts full in-house general contracting, materials procurement, property management and capital markets capabilities. With corporate offices located in Winter Park, FL and Athens, GA, Hillpointe is led by Kelly Mahoney and Steven Campisi. Hillpointe has extensive experience in the development of high-quality workforce housing. Hillpointe’s senior management team has developed and built more than 4,000 units of residential and multifamily housing assets, representing over $750,000,000 in asset value.