BH Properties (“BH”) has launched a new investment initiative into affordable housing with a goal of ultimately building a $1 billion portfolio of assets. The new initiative will be led by veteran affordable housing executive William “Bill” Stoll who joins the firm as Managing Director, announced company President Jim Brooks.
An adjunct to the firm’s value-add multifamily platform, the new platform will focus on low-income housing tax credit (LIHTC), Section 8 and age-restricted housing throughout the United States. For the Los Angeles-based real estate investment firm, which manages a 10 million-square-foot portfolio of commercial real estate assets and more than 2,000 multifamily units, investment in affordable housing is complementary to its other business lines including value add acquisitions, bankruptcy solutions, and investment in real estate debt instruments across the capital stack.
“As long-term investors, our affordable housing strategy is driven by the annuity-like nature of the income stream and not the assumption of tax credits where most investors play,” said Brooks. “We will be looking at assets with 100 or more units, typically following the expiration of the 15-year compliance period, where we can then hold them for as long as a decade. We believe we can benefit from the durable and consistent cash flow that a professionally managed asset can generate.”
“Our goal is to build scale relatively quickly,” added Andy Van Tuyle, Senior Managing Director Investments. “The addition of Bill, his contacts, reputation and experience will help expedite this effort.”
Stoll, who will work closely with Van Tuyle, brings to BH more than $6 billion dollars in transaction experience over his nearly 14-year career at Steadfast Companies. Stoll, a graduate of San Diego State University, joined the Public Non-Traded REIT in 2009 as manager of a Southern California portfolio of 10 LIHTC properties, eventually rising to Executive Vice President of Acquisitions. In addition to completing the acquisition and disposition of nearly 150 multifamily, LIHTC and Section 8 properties, Stoll played an integral role in construction, financing and property management during his tenure at Steadfast.
“It’s bittersweet to be leaving Steadfast, but Jim and Andy offered me an opportunity to lead and grow their new affordable housing platform,” said Stoll. “I was impressed with BH Properties’ well capitalized balance sheet, and their track record of making investment decisions quickly. This has allowed me to hit the ground running and we are already looking at potential investments in Texas, California, Arizona and Colorado.”
