WINTER PARK, Fla., March 04, 2021 (GLOBE NEWSWIRE) — 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 II, LP (the “Fund”) at $110 million. The oversubscribed Fund is focused on the development of Class A quality apartments competitively priced for workforce tenants.
“Hillpointe’s successful fundraise and expanding investor base marks another significant milestone for our company,” noted Steven Campisi, Co-Founder and Managing Partner of Hillpointe. “The Fund will allow for the development of the next eight workforce housing projects in our pipeline representing approximately $320 million of total asset value and approximately 2,400 workforce housing units in the southeastern United States. There is significant unmet demand for newly built multifamily product with rental rates between $1.00 and $1.20 per square foot and we believe the ability to deliver such product at an attractive cost basis significantly insulates our workforce housing strategy against downside risks.”
“We are pleased to have received such a high level of interest in our workforce housing strategy,” said Jeff Goll, Hillpointe Managing Director and Head of Capital Markets. “Our team is grateful for our long-term investors and excited to welcome new limited partners that include institutions, family offices and multi-family offices nationwide. We greatly value these relationships and look forward to growing with our partners as we execute our strategy in this Fund and future funds.”
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. Multifamily, and in particular the workforce housing sector in the southeastern United States, has continued to outperform other real estate product types. Suburban locations, sunbelt states, secondary markets and the workforce housing subsector were strong performers in 2020 as COVID-19 accelerated and amplified demographic tailwinds that were already in motion.
“Our investment thesis resonates with our investors and tenants alike,” said Kelly Mahoney, Co-Founder and Managing Partner of Hillpointe. “We utilize an integrated development model to bring new housing assets, priced at rents that are comparable to 10+ year old fully occupied housing, in the target market. Hillpointe’s fully integrated approach and our ability to deliver completed projects at a highly attractive cost basis provides a unique competitive advantage versus other real estate investments. We are able to offer newly built apartments to renters at comparable rates to much older, inferior product, allowing for rapid stabilization and attractive investment performance across the market cycle.”
The Hillpointe Workforce Housing Partnership II, LP exceeded its $100 million target and achieved its hard cap of $110 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, asset 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’s principals have developed and acted as general contractor on over 4,000 units of housing representing over $500 million of asset value over the past two decades.