Nova Appian Preferred Income Fund I to Invest in Workforce Housing Throughout Northeast from DC to Boston with Focus on PA, NJ, NY & CT
OneWallPartnersTM, an owner and manager of transit-oriented workforce housing, has announced the launch of Nova Appian Preferred Income Fund I, a $50 million preferred equity fund that will target transit-oriented workforce housing in the northeast United States. The Fund is open to accredited investors seeking to invest in real estate.
OneWall has a strong track record of successful workforce housing investments, and launched the Fund to deliver diversified, superior risk-adjusted returns from its proven investment niche targeting transit and lifestyle-oriented workforce housing. The Fund will seek eight to 15 multi-family residential assets in the northeast, initially focusing on the States of Pennsylvania, New Jersey, New York and Connecticut.
The term of the Fund will be five years with a preferred return hurdle of 9% to 10%, and a target return of 11% to 13% annualized net of fees and expenses. OneWall has committed $2.5 million to the Fund, already has millions of dollars in soft commitments from investors, and is in discussions with three institutional investors for an additional $10-15 million. Additionally, OneWall has already identified up to six transactions totaling more than 1,800 apartment units and representing preferred equity investment of up to $27 million.
OneWall invests in walkable, transit-oriented urban communities and lifestyle-oriented suburban communities with value-add potential and close proximity to major employment centers that contain unaffordable housing. The submarkets the company targets are typically less competitive, undervalued secondary markets close to more competitive, high-priced markets, enabling the company to generate superior deal flow from off-market and pocket listings. OneWall currently owns and manages almost 3,500 units in New Jersey and Pennsylvania and has approximately 800 units under contract in New York and Pennsylvania.
OneWall’s executive leadership and senior property management teams have more than 200 years of collective experience, and have completed more than $20 billion of real estate and private equity transactions. OneWall has acquired and/or recapitalized 69 properties with an aggregate purchase price of $561 million.
Historically, OneWall has raised capital on a deal-by-deal basis, working with more than 100 investors, including high-net-worth individuals, family offices and institutions, some of whom received preferred equity. Since investors have responded extremely well to individual preferred equity offerings, the firm has adapted this structure for the Fund and is excited to offer the added benefit of diversification.
According to partner and chief investment officer, Nate Kline, “preferred equity provides an extra margin of safety for investors and the workforce housing asset class has been resilient and stable during various economic cycles. There are a number of powerful, underlying drivers that support our focus on workforce housing, including a significant supply and demand imbalance that shows no signs of abating. Sustainable social and demographic trends are combining in a perfect storm to drive increased renter populations. Aging baby boomers are downsizing from large homes and moving closer to cities, growing minority populations who gravitate toward high living cost employment centers are more likely to be renters, most millennials prefer to rent or cannot afford to buy and many are delaying marriage and kids, while generation z mostly lives with their parents today and will be flooding the rental market soon.”
“OneWall has demonstrated conservative property underwriting, thoughtful structuring and an effective management infrastructure that supports institutional quality asset management,” said Ron Kutas, partner and chief operating officer. “Our expertise in sourcing, screening, financing, managing, rehabilitating and selling workforce housing assets positions us to excel in all market environments” added Andy Wallace, partner and chief executive officer.
OneWall can be contacted at ir@onewallmanagement.com and more information can be obtained by signing up on the investor portal at invest.onewallpartners.com.
About OneWallPartnersTM
OneWallPartnersTM was founded in 2010 with a primary focus on multi-family real estate assets. A vertically integrated real estate firm, OneWallPartnersTM focuses on transit-oriented workforce housing, with approximately 3,500 units of rental housing in New Jersey and Pennsylvania. Company principals have extensive management expertise across a spectrum of industries including real estate, health care, logistics and transportation. OneWall Partners’ in-house property management group, OneWallManagementTM, manages all the firm’s assets, and helps it control 100% of the value chain while realizing significant operational efficiencies.
