OAKLAND, Calif., April 3, 2018 /PRNewswire/ -- In one of the nation's highest cost areas, a group of investors and nonprofits has purchased an Alameda County, CA apartment complex where rents will be kept affordable to more than 100 families.
The purchase of Quail Run, in San Leandro, CA, is the latest transaction of its kind by Housing Partnership Equity Trust (HPET) which acquired the nine-building, garden-style property in partnership with Eden Housing, a California-based nonprofit. Located 13 miles south of downtown Oakland, rents will be affordable to families with incomes at 50 percent and 60 percent of the area median income. For a two-person household in Alameda County, the area median income is $77,900.
"This shows what socially responsible investment can do in the Bay Area and across the U.S.," said Anne McCulloch, HPET's chief executive officer. "As rents rise beyond reach for working Americans, there are solutions that can preserve affordability even in the most expensive markets."
HPET is a social-purpose real estate investment trust (REIT) owned by nonprofit affordable housing groups and institutional and impact investors. It attracts private capital from individuals and institutions seeking socially responsible investments. It then joins with its nonprofit housing partners to acquire affordable rental housing that would otherwise be rented at higher rates. With the acquisition of Quail Run with Eden Housing, HPET's national portfolio grows to nearly 3,000 affordable rental homes.
"The acquisition of Quail Run demonstrates the ability to preserve affordable and market-rate units in areas experiencing increasing rents and gentrification," said Linda Mandolini, Eden Housing's chief executive officer. "With the Bay Area's high cost of housing, it is imperative to preserve affordable communities such as Quail Run."
Since 1968, Eden Housing has provided a home for approximately 100,000 people. The organization owns and manages 10,700 affordable rental units in 165 properties. Quail Run is Eden Housing's third acquisition in partnership with HPET.
"Investors who want to make a positive impact on society are looking for investments that change lives for the better," said HPET's McCulloch. "The affordable housing crisis in the United States is real. One by one, real estate investments like this can make a tangible difference."
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SOURCE Housing Partnership Equity Trust (HPET)