Press Release: Natural Capital Exits Heartland Affordable Housing Portfolio from Fund I and Fund II

(Fayetteville, Ark.) — Natural Capital, an Arkansas-based private investment firm, has exited its investment in Heartland Affordable Housing, a 29-property portfolio comprising 1078 units across Arkansas, marking a significant realization from Natural Capital Fund I and Fund II.

Natural Capital began acquiring the portfolio in October 2020, sourcing the opportunity in partnership with Cushman & Wakefield | Sage Partners through a direct relationship led by Sterling Hamilton. The portfolio was secured at an attractive basis and comprised a mix of senior and workforce housing assets across in-demand markets throughout the state.

During the hold period, the portfolio demonstrated stable performance, with occupancy in the mid-90% range and rents positioned below HUD Fair Market Rent levels.

Natural Capital exited the investment to an institutional owner of affordable housing following a multi-year hold. Cushman & Wakefield | Sage Partners and CBRE represented Natural Capital during the transaction.

“This investment reflects our strategy of identifying high-quality, essential housing assets at a compelling basis and executing with discipline over the hold period,” said Brad Henry, managing partner of Natural Capital. “We were able to generate strong cash fl ow for investors while preserving long-term value in a critical housing segment. We’re proud of the outcome and appreciative of the partners involved.”

“We took pride in being good stewards of this portfolio, keeping the properties well maintained and ensuring they remained places residents were proud to call home,” said Marshall Saviers, CEO of Cushman & Wakefield | Sage Partners and general partner at Natural Capital. “That legacy was important to carry through in this transition.”

The exit represents continued progress in the lifecycle of Funds I and II, as the firm focuses on realizations and on returning capital to investors.