Hillpointe Workforce Housing Partnership V, LP
WINTER PARK, Fla., March 05, 2025 (GLOBE NEWSWIRE) — Hillpointe, LLC, a fully integrated real estate development and investment management firm focused on the development of market rate workforce housing in the Sun Belt, announced today the closing of Hillpointe Workforce Housing Partnership V, LP (“Fund V”) at its hard cap of $750 million. Fund V represents Hillpointe’s largest fund to date and is expected to support the development of approximately 30 workforce housing projects in Hillpointe’s pipeline, representing approximately $2 billion of total asset value and 10,000 workforce housing units across the Sun Belt. This significant milestone underscores Hillpointe’s continued growth and commitment to deliver best-in-class new apartments that are competitively priced for workforce tenants.
“We are thrilled to announce the successful closing of Fund V at its hard cap of $750 million, a testament to the confidence our investors have in Hillpointe’s mission and execution. This fundraise not only marks another milestone for our growing company but also enables us to deepen our impact by delivering best-in-class housing solutions that support the backbone of our communities,” said Steven Campisi, Co-Founder and Managing Partner. “We believe attainable housing is a rent classification; it shouldn’t be a quality classification. Our ability to deliver a state-of-the-art multifamily product at a significant discount to our competitors enables us to pro-forma attainable, or workforce housing rents, and still have our projects pencil from a financial standpoint.”
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, or about $50,000 to $85,000 annually. Over the last several decades attainable rental housing has largely disappeared, with quality rental housing options increasingly restricted to top-end luxury renters. 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 a small fraction 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 current market environment presents a compelling opportunity for well-capitalized operators who can execute new multifamily developments today. Demand tailwinds, including demographic-driven household formation and Sun Belt migration, remain firmly intact. At the same time, we believe the steep decline in new construction starts will eventually translate into further supply shortages, particularly in high-growth markets,” said Kelly Mahoney, Co-Founder and Managing Partner. “With deliveries set to drop meaningfully after 2025 we believe conditions, while not factored into our base case underwriting, are setting up for an extended period of rent growth and operational strength in the second half of the decade.”
“We continue to believe the combination of Hillpointe’s unique access to capital and our ability to deliver new assets at an attractive cost basis positions the firm to capitalize on a highly favorable market environment and deliver new assets into a market with significantly less competition,” said Jeff Goll, Managing Director and Head of Capital Markets. “With our fully integrated development model that allows us to control costs, underwrite new development opportunities to an attractive unlevered yield on cost and secure financing where others are unable, we are increasingly excited about the emerging landscape for current projects. We are grateful for the continued trust that our investors have placed in us, and we remain highly committed to delivering outstanding results.”
The Hillpointe Workforce Housing Partnership V, LP exceeded its $600 million target and achieved its hard cap of $750 million. There was no placement agent for the Fund. Greenberg Traurig, P.A. serves as legal counsel. Juniper Square serves as fund administrator.
About Hillpointe
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 headquarters located in Winter Park, FL, Hillpointe is led by its co-founders 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 10,000 units of residential and multifamily housing assets, representing over $2,000,000,000 in asset value.
Contact
info@hillpointe.com
(407) 752-9004
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/bed13da1-363a-45b8-ad3a-59237d09663c
