Rose Green Affordable Housing Preservation Fund, L.P.
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)
The Rose Green Affordable Housing Preservation Fund is a closed-end real estate private equity fund targeting major U.S. cities (Boston to Washington, D.C. corridor, Chicago, Denver, Los Angeles, Portland, San Francisco and Seattle). The Fund seeks to provide superior risk-adjusted returns (8-12% net IRR) and stable current cash flow (4-6% cash-on-cash) through the acquisition and greening of existing, transit-oriented affordable housing in high-demand markets.
The Fund leverages Jonathan Rose Companies’ 20+ years of multifamily investment and green building expertise. An award-wining, nationally-recognized firm, Jonathan Rose Companies currently develops, owns and manages $900 of multifamily housing across 3,000 units.
The Rose Green Affordable Housing Preservation Fund seeks to provide superior risk-adjusted returns (8-12% net IRR) and stable current cash flow (4-6% cash-on-cash) through the acquisition and greening of existing affordable housing. The Fund will seek to acquire affordable multifamily assets with high (typically full) occupancy, solid in-place cash flow and potential for strong capital appreciation. Target product type includes Section 8, Low Income Housing Tax Credit, mixed-income, and rent stabilized/controlled housing. Due to the high demand for transit-oriented affordable housing, these assets present an opportunity for low-risk returns and consistent income yields. In the case of Section 8 properties, government-guaranteed rents help maintain a stable top line.
Upon acquisition, the Fund will seek to enhance NOI through practical capital improvements and hands-on asset management. It will retrofit properties using high-impact, low-cost technologies that can yield paybacks and increase returns.
Investments will be diligently underwritten on in-place (vs. projected) cash flow. The Fund will primarily use long-term, fixed-rate debt (affordable housing is attractive to an array of lenders) and will not exceed a portfolio-wide LTV of 75% without Limited Partner Advisory Committee approval. Additionally, equity invested in any single asset will not exceed 20% of aggregate Capital Commitments without LP Advisory Committee approval.
of track record
the year funded
Jonathan Rose Companies
Headquarters location: United States of America
Other funds managed by this asset manager: Rose Value-Add Office Retrofit Fund, L.P.
Key performance indicators
Asset manager: Jonathan Rose Companies
Product track record: Fund has 13 years of track record
Target IRR: 10%
Committed Capital: 10,000,000 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: 2010
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: 01/06/2012
Product term: 10
Assets under management: 150,000,000 USD (US Dollar)
Investment size: Min: 5,000,000; Max: 30,000,000; Avg: 10,000,000
Co-investment policy: LPs 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: 2%
Carried interest: 20%
Hurdle rate: 7%%
GIIN Investors' Council Investment: No
Limited Partners / Investors: Fund is in formation. Current committed investors include foundations and family offices.
Limited Partner / Investor Type: Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors
Phone number: 917.542.3605
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Demand for well-located affordable housing far exceeds supply and is growing. 1 in 4 renters currently spends 50% or more of household income on rent and utilities, and the increasing share of cost-burdened renters is apparent in all 100 largest U.S. metros. In many high cost-of-living markets, waiting lists for subsidized housing are several years long.
The Rose Green Affordable Housing Preservation Fund seeks to bring private capital to address the need for well-located, energy-efficient affordable housing. The Fund will invest in existing affordable housing and preserve the affordability of these assets for the long-term. Upon acquisition, the Fund’s Manager will conduct strategic green retrofits to increase energy efficiency and improve tenant quality-of-life. The Fund also will invest only in assets in "smart-growth" locations that provide easy access to transit, employment, services and amenities, thereby reducing tenant costs and the environmental impacts of its properties.
There are currently few other private equity vehicles designed to green and preserve existing affordable multifamily stock. These investments can provide lasting social, environmental and economic benefits. Well-located, energy-efficient affordable housing reduces tenant costs and encourages vibrant, mixed-income communities. For investors, high-demand housing (often with government-guaranteed rents) can provide stable cash flow (annual dividends) and long-term capital appreciation.
NCREIF Apartment Property Index
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