Home News Hillpointe Closes $110 Million Workforce Housing Fund

Hillpointe Closes $110 Million Workforce Housing Fund

Hillpointe LLC, a real estate development and investment firm focused on workforce housing in the southeastern United States, has closed its Hillpointe Workforce Housing Partnership II LP after raising $110 million.

Hillpointe LLC, a real estate development and investment firm focused on workforce housing in the southeastern United States, has closed its Hillpointe Workforce Housing Partnership II LP after raising $110 million.

The Regulation D 506(b) fund launched in September 2020 to fund the development of Class A apartments for workforce tenants. The company said that it exceeded its $100 million target and achieved its hard cap of $110 million.

“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,” said Steven Campisi, co-founder and managing partner of Hillpointe.

Campisi added, “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.”

Due to the undersupply of workforce housing, Hillpointe sees an opportunity to develop new housing targeted at renters who earn between 60 percent and 120 percent of area median income. The company said that multifamily, and in particular the workforce housing sector in the southeastern United States, has continued to outperform other real estate product types.

Hillpointe indicated that 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.

Hillpointe’s corporate offices are located in Winter Park, Florida and Athens, Georgia.

Click here to visit The DI Wire directory page.