Officials have closed on a $444 million preservation transaction involving 2,740 affordable housing units.
Described as one of the largest single preservation transactions, the deal focuses on 13 former low-income housing tax credit (LIHTC) properties in Albuquerque, New Mexico, and Portland, Oregon. Officials say that 93% of the units will remain affordable.
For the owner and operator, Guardian Real Estate Services, this transaction represents its most expansive portfolio acquisition to date. The extensive investment strengthens Guardian’s presence in Oregon and expands the organization’s footprint into New Mexico, aligning with the company’s long-term growth strategy.
National Equity Fund (NEF) and J.P. Morgan are partners in the deal.
“This transaction represents a pivotal moment for Guardian as we advance our mission to preserve and expand quality affordable housing,” said Guardian president Tom Brenneke. “Partnering with NEF allows us to safeguard thousands of homes while expanding our footprint into New Mexico and deepening our presence in Oregon. Together, we are proving that large-scale preservation can be both financially sound and rooted in community well-being.”
The deal is structured as a limited partner equity investment. Officials noted that new LIHTCs are not being administered. J.P. Morgan and NEF through a fund are contributing approximately $160 million.
In recent years, NEF has been intentional in organically expanding its capabilities to address the affordable housing crisis, said company officials. This has included the growth of its structured finance practice, which focuses on the preservation of affordable housing and the creation of workforce housing for the country’s “missing middle,” or moderate-income earners. Last year, the team delivered nearly $900 million structured finance investments.