BH Properties Plans to Invest $1B in Affordable Housing

The firm’s new venture coincides with a new key hire.

Jim Brooks

Jim Brooks. Image courtesy of BH Properties

With the ultimate goal of amassing a $1 billion portfolio of affordable housing assets, BH Properties has launched new investing endeavor.

“The addition of affordable housing as an investment strategy continues our philosophy of creating a diversified portfolio of assets helping to insulate the many ups and downs in economic cycles,” BH President Jim Brooks told Multi-Housing News. “The many hurdles developers face in delivering new affordable housing properties can limit the amount of competition that can be delivered. We see the acquisition of existing properties as a good long-term strategy.”

The new affordable housing initiative will be an adjunct to BH’s value-add multifamily platform, focusing on low-income housing tax credits, Section 8 housing and age-restricted housing across the U.S. BH Properties’ investment in affordable housing will complement its other business lines. Those lines are value-add acquisitions, bankruptcy solutions and investment in real estate debt instruments across the capital stack.

A new hire

BH manages more than 2,000 units of multifamily and a 10 million square foot portfolio of commercial property assets. The firm has also recently hired affordable housing sector veteran William “Bill” Stoll as managing director. Stoll, who will work closely with Van Tuyle, logged an almost 14-year career and tallied $6 billion dollars in transaction experience at Steadfast Companies.

Stoll has completed the acquisition and disposition of nearly 150 multifamily, LIHTC and Section 8 assets and worked in an integral capacity in construction, financing and property management during his time at Steadfast.

In a prepared statement, a BH official noted the company’s affordable housing strategy is propelled by the annuity-like nature of the income stream, essentially a dependable cash flow generated by a professionally managed asset, not in the assumption of tax credits favored by most investors.

The company targets properties featuring 100 or more units, typically following the expiration of the 15-year compliance period. The company will then hold the assets for up to ten years’ time.

Last month, Evergreen Real Estate Group landed LIHTC for the development of Rifle Apartments, an affordable apartment community in Rifle, Colo.

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