PEF Advisors Acquires Affordable Washington Community

Preservation Equity Fund Advisors has acquired Prairie View Apartments, a 284-unit community in Vancouver, Wash., for $56 million. The property was purchased from DH&G.

The 1990-built community is located about 25 minutes north of downtown Portland. In 2008, the property was redeveloped through Low-Income Housing Tax credit. Units are restricted to residents earning up to 60 percent of the Area Median Income.

Ann Caruana, president & chief investment officer, PEF Advisors, told Multi-Housing News that her firm uses a proprietary data analytics platform that analyzes 70 different variables across 3,000 counties nationwide when choosing what properties to buy.

“Portland scores consistently well on fundamental demand metrics like population growth, job growth, and income growth while becoming increasingly unaffordable,” Caruana said. “While this creates strong demand for our housing, it also creates a need to protect and preserve the asset from converting to market at exit. Since there is such a large gap between affordable and market rents in this metro, residents would be displaced if it were to convert, which would not align with our mission.”

Prairie View Apartments includes 30 buildings spread across approximately 18 acres. The community features 66 one-bedroom units, 152 two-bedroom homes and 66 three-bedrooms. It was 98 percent occupied at closing.

Floor plans average 1,092 square feet. Each unit includes a fully equipped kitchen with white or stainless-steel appliances, washer/dryer connections, balconies or patios, walk-in closets and storage.

Common-area amenities include a central laundry facility, an on-site daycare center operated by Educational Opportunities for Children and Families, a splash pad, a fenced dog park and onsite and covered parking.

The deal marks PEF Advisors’ second acquisition through its third affordable housing fund.

Portland’s housing challenges

Vancouver’s multifamily market comprises approximately 40,000 units, with 5,000 units developed under Section 42 Low-Income Housing Tax Credit, according to Doug Childers, senior managing director and affordable housing leader, JLL. The LIHTC units are designated for residents earning no more than 60 percent of AMI and offer substantially lower rents than unrestricted properties.

“Notably, LIHTC assets in Portland’s suburbs, including Vancouver, outperform their counterparts within Portland city limits, primarily due to a more favorable regulatory environment,” Childers told MHN. “However, escalating costs and constrained financing options have significantly impeded the delivery of new inventory to the market, exacerbating supply constraints.”

Earlier this year, a joint venture including BRIDGE Housing broke ground on a 224-unit affordable housing project in Portland. Two-thirds of the units in the community will cater to residents earning up to 60 percent AMI while the other third will be restricted to those earning no more than 30 percent AMI. Delivery is anticipated by 2027.