Manulife Investment Management and TruAmerica Multifamily are forming a $1B joint venture to invest in affordable housing.
The platform, called Anchor Point Residential, launches alongside the acquisition of a 51-property, 6,000-unit portfolio of buildings constructed between 2003 and 2023, the companies said in a press release. The properties are throughout major metro areas in California, Texas and Washington as well as other smaller locales.
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"The residential market has proven resiliency largely stemming from undersupply of housing," Jessica Harrison, head of transactions and capital markets in North America for Manulife Investment Management, said in the release. "This portfolio, and the broader strategy, demonstrates durable cash flow supported by stable occupancy and a fundamental shortage of housing meeting this level of affordability."
The first tranche of the deal closed in August, with additional phases to follow throughout the fall. TruAmerica Multifamily is based in Los Angeles and has $16B of assets under management with a portfolio of over 60,000 apartment units.
The joint venture aims to respond to a structural challenge of a lack of affordable housing by preserving access to income-restricted units, the companies said. They said the size, scale and experience of the firms will enable them to help solve a part of the housing crisis.
The U.S. is short 7.1 million affordable rental homes and only has 35 units available for every 100 low-income households, according to the National Low Income Housing Coalition.
The goal of the platform is to create a scalable and mission-aligned portfolio centered on local need and durable cash flow, the companies said.
"Our partnership with Manulife IM gives us the ability to act decisively and responsibly in a sector where execution and long-term stewardship are essential," said Wes LaBar, managing director of West Coast acquisitions at TruAmerica Multifamily.
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