PEF Advisors closes $100m affordable housing fund

Preservation Equity Fund Advisors has closed its WNC Preservation Equity Fund 2. It achieved its target of $100 million and is the second fund of the organization’s equity fund strategy.

The fund’s objective is to invest in affordable housing apartment communities serving residents making 80 percent of the area median income (AMI) or less and preserve affordability during the period of ownership. Markets targeted include high cost-burdened communities in the United States with significant barriers to entry and a significant gap between affordable and market-rate apartment rents.

To date, the fund has made seven investments totaling 682 units and a value of $77 million across five states including California, Washington, Colorado, Maryland and Florida. Of the original six investors in Fund 1, four reinvested in Fund 2, and PEF Advisors attracted another eight new investors to the firm’s private equity strategy for a total of 12 investors in Fund