Washington DC — Drew Ades has joined the Network as the President and CEO of the Housing Partnership Equity Trust (formerly known as MuST). Drew comes to us from the Multifamily Business at Fannie Mae where he was responsible for starting an entity similar to HPET as well as for launching Fannie Maes Green Initiative.
HPN and 13 members have created the Equity Trust, which will operate as a REIT and partner with members to purchase unsubsidized properties on the open market. The Equity Trust will be able to leverage the combined scale of its members to access the capital markets and attract low cost equity, in order to provide a ready source of acquisition capital. Through properties purchased in partnership with the Equity Trust, members will expand their portfolios and diversify their income away from public subsidies such as LIHTC fees.
HPET will invest strategically in medium- to large-sized Class B and C multifamily properties, including non-core, secondary real estate markets that are currently at or below-market rents (i.e. below 120% of area median income) and are typically unsubsidized, unrestricted rental properties.
To help its members compete with private developers, HPET will provide 95% of the capital needed to acquire, reposition and stabilize assets. HPET will also seek to acquire portfolios of assets and pools of notes in order to gain control of the properties and move them into the hands of HPET members.
In addition to using the combined enterprise capacity of the members to access the capital markets, HPET will also be positioned to achieve efficiencies in property operations, leverage the Strength Matters Data Warehouse platform to standardize reporting, and take advantage of HP DIRECT and HIPEx. HPET will also be conducting energy audits and capital improvements will include Green enhancements to all of its properties.
For more information, please contact Drew Ades.