SEATTLE, Nov. 19, 2020 /PRNewswire/ -- Urban Housing
Ventures ("UHV"), a fund with an innovative approach to addressing
the affordable housing crisis, announced the closing of its first
fund in partnership with Microsoft, Washington Federal, Washington
Trust, and Stream Real Estate, and financing provided by Berkadia
and Freddie Mac.
The organizations partnered to create a fund that enables
investors to buy existing, market-rate apartments, then lower up to
40% of the units to middle-income levels, without losing long-term
financial viability for investors. The new model accelerates the
availability of affordable housing to middle-income earners like
teachers and nurses.
Urban Housing Venture's Fund I acquired three Class A
multifamily communities with 335 units in Bellevue and Kirkland, WA. UHV is converting 40% of the
acquired units to middle-income affordable housing targeting
individuals and families earning 60-80% of Area Median Income.
"The Puget Sound region hasn't built enough housing for the
people who live here, including many who are on the front lines of
our community's response to COVID-19," said Brad Smith, President of Microsoft. "We need
fresh, creative approaches like this one to quickly bring new
private sector financing and funding to address the affordable
housing crisis – in our home state of Washington and nationwide."
"Through self-imposed rental restrictions we are helping ensure
that affordable housing is not only preserved but created," said
Debby Jenkins, Executive Vice
President and Head of Multifamily at Freddie Mac. "Our $325 million commitment will supply debt
financing that drives the conversion of high-cost multifamily units
to rental homes that are affordable to middle-class families. The
creation of affordable housing is central to Freddie Mac's mission,
and it only becomes possible when we work together."
"There are many different levels of need when it comes to
affordable housing," said Brent
Beardall, President and CEO of Washington Federal Bank.
"This partnership helps solve the often-forgotten middle income
workforce – teachers, nurses, and first responders, to name a
few. We are thrilled to be able to serve our community in this
way, and to be part of a team leading the way to build diverse
neighborhoods where middle income workers can actually afford to
live."
Kevin Blair, President of
Western Washington for Washington
Trust Bank, added: "The rapid growth in the Puget Sound has put
many pressures on the underlying infrastructure of our
region. Affordable housing is one of the key issues that we
face. UHV provides an innovative and scalable solution for
middle income housing. Washington Trust Bank is proud to team up
with UHV and Microsoft to help create a solution for what is often
referred to as workforce housing. By working together towards
common goals like these, we can all make a difference in our
communities."
"Affordable housing is a critical issue that requires deep
commitment and innovative problem solving from all sectors," said
Berkadia CEO Justin Wheeler. "I
believe that multifamily solutions are the primary avenue to an
answer. We are proud to have worked with UHV and Freddie Mac to
facilitate a funding solution, together with Microsoft's affordable
housing commitment, for this unique and essential project. We will
continue the crucial work that supports the shared mission of our
partners to provide safe and affordable housing for communities in
the Pacific Northwest and across the country."
"One of the most pressing challenges we face in our community is
how to quickly provide a new supply of high-quality affordable
housing. We are grateful to our lead partners for supporting
the long-term vision of bringing a scalable solution to this
issue," said Tim Cavanaugh, Managing
Member of Stream Real Estate.
About Urban Housing Ventures
Urban Housing Ventures is an innovative privately funded company
bringing affordable housing apartment units to middle-income
individuals and families. UHV believes that our cities are stronger
and more vibrant when those who work in our cities can also afford
to live there. Led by management from Stream Real Estate, UHV
takes existing high-quality and well-located apartment units and
converts units to affordable housing units while maintaining
existing market-rate housing. This helps create economically
diverse communities, while also delivering long-term risk adjusted
market returns. UHV's business model is economically viable and
scalable because of the combination of low-interest Freddie Mac
loans and a continuation of market rents on a portion of the
units. For more information on UHV's philosophy and approach
to addressing affordable housing, or for more information on
leasing opportunities through UHV property manager Avenue 5, visit
www.urbanhousingventures.com.
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SOURCE Urban Housing Ventures
