Manulife IM and TruAmerica Form $1 Billion Affordable Housing Joint Venture

Manulife Investment Management and TruAmerica Multifamily announced the formation of a $1 billion affordable housing joint venture, representing a significant expansion of both firms' affordable housing platforms. The partnership, named Anchor Point Residential, responds to the fundamental and chronic undersupply of housing across the United States, compounded by rising construction costs, elevated interest rates, and widening rent burdens that have created demand far outpacing available inventory.

The joint venture is anchored by the acquisition of General Partner interests in a geographically diverse portfolio of high-quality, income-restricted assets backed by Low-Income Housing Tax Credits. The platform will debut with the acquisition of a 51-property, 6,000-unit portfolio constructed between 2003 and 2023, located across major metro areas in California, Texas, and Washington, including Los Angeles, San Diego, Orange County, Sacramento, Bakersfield, Palmdale, Austin, Houston, and Dallas-Fort Worth.

Marc Feliciano, Global Head of Real Estate at Manulife IM, stated that the partnership reinforces the company's commitment to finding strategic solutions to increase access to affordable housing and gain exposure to favorable fundamentals across the housing sector. The collaboration with TruAmerica, a leading owner and operator in workforce housing, focuses on preserving affordable housing to ensure these essential communities remain accessible for thousands of residents across the country.

Noah Hochman, Co-Chief Investment Officer & Head of Capital Markets at TruAmerica Multifamily, emphasized that the acquisition represents a natural extension of their commitment to preserving high-quality housing that working families can afford. The strategic partnership leverages complementary strengths and operational expertise to create a leading platform in the affordable housing space, addressing the increasingly urgent need for housing solutions that serve low- to middle-income renters facing the greatest affordability strain.

The joint venture aligns with investor demand for resilient, income-generating residential sectors, with essential housing supported by long-term federal tax credit programs offering both stability and opportunity for institutional capital. Jessica Harrison, Head of Transactions & Capital Markets, North America for Manulife IM, noted that the residential market has proven resiliency largely stemming from undersupply of housing, with this portfolio demonstrating durable cash flow supported by stable occupancy and fundamental shortage of housing meeting this level of affordability.

Wes LaBar, Managing Director of Acquisitions at TruAmerica Multifamily, highlighted that the portfolio underscores their commitment to building a scalable affordable housing platform rooted in quality communities and strong locations. The partnership enables decisive and responsible action in a sector where execution and long-term stewardship are essential, particularly in the Low-Income Housing Tax Credits sector where transactions of this scale and complexity remain rare.

The transaction reflects significant diligence, including alignment with United States Department of Housing & Urban Development guidelines, coordination with numerous counterparties, and implementation of a long-term stewardship model. The first tranche of this transaction closed in August, with additional phases to follow throughout the fall, creating a scalable and mission-aligned portfolio rooted in local need and durable cash flow.