Pinnacle Partners, JPI Launch $200M Workforce Housing Fund

Real estate investment management firm Pinnacle Partners and JPI, a developer and builder of Class A multifamily housing, announced today the launch of a $200 million Workforce Housing Fund.

The fund, according to the partners, intends to include four projects located in Texas, California and Washington – given their proximity to thriving industries, high-quality job opportunities, and the growing demand for essential workforce housing.

The U.S. workforce and affordable housing sector is facing a historic shortage, presenting a significant opportunity for impactful investment. In high-growth markets where job creation and population expansion have surged, the lack of attainable housing has created significant demand.

Through qualified opportunity zones and workforce housing developments and in partnership with 50+ RIAs and hundreds of individual investors, Pinnacle Partners focuses on tax-advantaged private real estate investment opportunities. The firm has capitalized over $1 billion in multifamily development projects, including over 900 units of workforce housing.

“With JPI’s integrated development and construction platform and our capital raising expertise, we believe this fund will both meet crucial housing needs and produce strong returns for our investors,” said Jeff Feinstein, managing partner of Pinnacle Partners. “These projects should have an immediate impact in the communities where they are located.”

Having developed 117,000 homes across more than 25 states, JPI brings more than 35 years of commitment to providing high-quality homes across the income spectrum.

In affiliated news, Scott Turner, chief visionary officer of JPI, was nominated to serve as the U.S. Secretary of Housing and Urban Development, or HUD.

“JPI is committed to innovation and excellence in development – redefining what’s possible with sustainable practices and transformative building solutions that prioritize quality, affordability, and impact,” said Mollie Fadule, chief financial and investment officer at JPI.

“With homeownership becoming increasingly out of reach, we’re proud to meet the growing demand for high-quality rental options that serve middle-income households and create lasting value in these markets” said Payton Mayes, chief executive officer of JPI.

The fund comprises the following developments:

• Oceanside, Calif.: a 295-unit, four-story garden-style community. Conveniently located near Oceanside’s downtown and Camp Pendleton, this project aims to supply quality workforce housing in Northern San Diego County.
• In Redmond, Wash.: a 224-unit, eight-story podium-style development located near the Microsoft Corporate Campus and the East Link Light Rail. This project provides easy access to technology hubs and aims to meet the growing demand for workforce housing in the Seattle-Bellevue region.
• Denton, Texas: a 415-unit development designed to serve diverse income levels. This project brings amenities to one of Texas’ fastest-growing college towns (University of North Texas, Texas Woman’s University).
• McKinney, Texas: a 393-unit development located in the northern suburb of Dallas. Featuring upgraded interiors, the project aims to support the area’s expanding population.

“This fund consists of investments across some of the most dynamic markets in the country that show strong job growth and economic conditions,” said Leo Backer, managing partner of Pinnacle Partners. “These favorable conditions, combined with the significant demand due to an unprecedented housing shortage, offer strong investment opportunities.”

In November 2024, Pinnacle Partners and development company Trilogy Investment Company launched a build-to-rent opportunity zone fund intended to capitalize three shovel-ready BTR communities – two in Decatur and Augusta, Ga., and one in Huntsville, Ala.

Since 1989, JPI has developed 384 communities across 143 cities, delivering over 117,000 homes with a total value of $26 billion. JPI currently has 27 communities under construction, totaling 9,174 homes, and 11,204 additional homes in development valued at $3.6 billion.

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