WNC

Preservation Equity Funds

More Than A Return

In too many communities across the nation, Americans are struggling to afford a place to live. More than 20 million renter households – including working families, seniors, and veterans – spend over 30% of their income on rent. More than half of these households spend more than 50% of their income on rent.

In short, the demand for affordable rental units far outstrips supply, and the problem is getting worse because we are losing approximately 100,000 affordable rental units each year due to demolition, conversion to market rate apartments, condos and commercial use.

To address this crisis, WNC launched its Preservation Equity Funds (PEF) with a mission to preserve existing, affordable rental housing for low- to moderate-income residents while seeking cash flow and real estate appreciation returns to CRA and yield oriented investors.

PEF acquires existing affordable rental properties that are renting to tenants making 80% (in the aggregate) or less of area median income, including:

  • LIHTC apartments that have completed or substantially completed their 10-year tax credit period
  • Project-based Section 8 apartments and/or apartments with Section 8 vouchers holders
  • Stand-alone (non-LIHTC) properties that meet the Fund’s 80% aggregate income test

How We Measure Investment Success

  • Stable income from distributions
  • Capital appreciation
  • CRA / Affordable Housing Tax Opportunities
  • Strong hedge against recession
  • Drive revenues & reduce expenses

 

 

Impact Objectives

  • Social impact and CRA
  • Preserve affordability for the long-term
  • Provide social services programs to enhance resident’s life
  • Implement energy efficiency & environmentally conscious programs with bottom line impact

PEF Differentiators

What Sets Apart PEF

Streamlined Strategies and Extensive Experience

A senior investment team with four decades of affordable housing experience and a robust deal flow pipeline enables us to target, assess, and implement effective investment strategies

In-House Sourcing and Management

Clients gain access to the entire organizational stack, with full-built team handling everything from origination to close

Best-in-Class Reporting

Strong, transparent communication and advanced technological assets, such as our in-house investor portal (EPIQ), provide critical information and administration to keep you informed and agile

Comprehensive Research Tools

A strong commitment to due diligence and market analysis allows WNC to offer substantial research functionality, including a proprietary market ranking model, to ensure projects and investments are well-positioned

Why Choose PEF

Flexible Acquisition Vehicle

Not every affordable apartment owner is a fee-simple seller. Most developers and general partners would like to remain owners but need capital to buy out their partners. PEF offers creative equity solutions and structures for a variety of situations and objectives

Unmatched Platform and Senior Leadership

Led by a senior team with a unique blend of affordable housing and real estate private equity experience supported by a collaborative 11-member origination team with 1.7B in closed acquisitions

 

Prolific Deal Flow and Proven Results

A long track record of cash flow and distributions exceeding expectations, and a robust deal flow pipeline with 62% of acquisitions sourced off‐market