A nationwide coalition of housing-related nonprofits has formed a private real-estate investment trust, mostly to preserve affordable rentals in communities across the country where rising values have led to shifts from low-income housing to higher-priced properties, according to The Wall Street Journal.
The Housing Partnership Equity Trust is the nation’s only real-estate company owned and operated by nonprofits. Among the owners are Denver-based Mercy Housing Inc., LINC Housing Corp., and Nevada HAND Inc.
The trust has raised more than $100-million from private-sector investors, including Citigroup and Morgan Stanley, as well as funding from the John D. and Catherine T. MacArthur Foundation. It seeks to raise $500-million from institutional investors.
Participating nonprofits across the country own equal shares in the trust, which acquired its first property last week, a 128-unit apartment building in Aurora, Ill.