Enterprise Multifamily Opportunity Fund I, LLC
United States of America
Last updated 13 May 2020, by Impactyield.
Developed countries (203) / More developed regions (202) / More developed regions (North America, Asia & Oceania) (153) / United States of America (112)
According to the National Housing Trust, for every new affordable home built in the United States, two are lost due to deterioration, abandonment or conversion to more expensive housing. At the same time, more than a quarter of renter households are spending more than 50% of their income for housing. The logical first step in stemming this growing affordability crisis is to preserve the existing inventory of affordable rental homes that has been built over the last 30-years.
The Enterprise Multifamily Opportunity Fund (the "Fund") has been formed to address the need for a new source of capital to preserve affordable and workforce rental housing. Enterprise believes that preservation can be achieved in a way that provides a risk adjusted return to investors while maintaining rents at levels that are affordable to working families, improving the assets’ physical condition to ensure long-term stability, reducing the environmental footprint of the property through green improvements, and helping to stimulate economic development in the surrounding community.
The Fund will invest equity in private affordable and workforce rental housing communities and is targeting a 10-12% net return to investors (including 7% on a current basis). The target capital raise is $50 million, which we estimate will allow for the preservation and improvement of 5,000 homes.
The Fund anticipates investing in two segments of rental housing communities. The first will include existing affordable housing properties that were originally financed by the housing credit program or with Section 8 rental subsidies. There is a large inventory of properties built using these programs during the last 30+ years that are in need of new capital and professional management.
The second segment of apartment communities that the Fund will target are privately owned, unrestricted "B" and "C" class properties. These communities provide much of the rental housing that serves lower-income families and are subject to poor management and investor "flipping." Despite being unrestricted, these properties have rent levels that are typically affordable to working families and are critical to the diverse and thriving communities.
Investing in existing rental housing has several benefits over other real estate alternatives:
(a) Less market drive volatility because rents are typically lower than market rate competition;
(b) Fewer risks because there is little-to-no construction or lease-up risk;
(c) Predictable underwriting because there are years of proven cash flow; and
(d) Immediate return because investments will start to deliver cash distributions within months of acquisition.
of track record
the year funded
Key performance indicators
Asset manager: Progreso
Product track record: Fund has 11 years of track record
Target IRR: 10%
Committed Capital: 2,500,000 USD (US Dollar)
Target return category: Risk-adjusted market-rate of return
Fund domicile: United States of America
Product status: Open - committed capital
Inception year: 2012
Vintage year: n.a.
Target region: Developed countries, More developed regions, More developed regions (North America, Asia & Oceania), United States of America
Target close date: 01/10/2013
Product term: 8 years + 2x 1-yr ext
Assets under management: 50,000,000 USD (US Dollar)
Investment size: Min: 1,000,000; Max: 10,000,000; Avg: 2,500,000
Co-investment policy: LPs do not have priority, With LPs and non-LPs
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 0
Fund investments to date exited or repaid: 0
Management fee: 1.5%
Carried interest: 20%
Hurdle rate: 7%%
GIIN Investors' Council Investment: Yes
Limited Partners / Investors: Enterprise Community Partners
Limited Partner / Investor Type: Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors
Phone number: (212) 284-7191
If you wish to have your details removed from this database please email firstname.lastname@example.org
The Fund is designed to accomplish the following social and environmental impact goals:
(a) facilitate the preservation and recapitalization of existing affordable housing resources, such as older properties financed utilizing the housing credit program or project-based Section 8 subsidy;
(b) facilitate the acquisition of privately owned, unsubsidized, "B" and "C" class properties by qualified operators, thereby encouraging long term stewardship and avoiding investor “flipping”;
(c) make strategic physical improvements to the properties, including green retrofits, that will benefit both the owners and tenants; and
(d) encourage the use of social services as a means of providing residents with an opportunity for a better life.