Rose Green Affordable Housing Preservation Fund, L.P.

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.

Financial description

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.