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Tax-Exempt Bond

Earn tax-free income while playing a direct role in building stronger communities.

Discover how your capital can create public good while earning tax-free interest by leveraging tax-exempt bonds.

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Return Profile*

9-10%
Net IRR
2-2.4x
Net Equity Multiple
18-20%
Tax-adjusted Net IRR
4-4.8x
Tax-adjusted Net Equity Multiple

*Estimated predictions of performance are not based on actual investment results and are not guarantees of future results.

What are tax-exempt municipal bonds?

Tax-exempt bonds

A financing structure in which state and local governments or qualifying non-profits issue bonds to raise capital for projects, such as affordable housing, with the benefit that investors holding these bonds generally do not pay federal and often state income tax on the interest they earn. A real estate investor in such a deal buys these bonds to finance a property, such as a low-income housing project, thereby receiving tax-advantaged returns while contributing to projects that benefit the public interest. Bonds offer real estate managers a lower-cost financing solution that will fund up to 100% of Project costs.

A crucial low-cost financing solution

Secure investment structures

Tax-exempt bonds offer institutional-grade security and inflation-protected returns.

Low-cost financing solution

We build for today– and for tomorrow.

At ArtHaus Partners, sustainability isn't just a goal—it's how we build value. To date, we've installed 25 photovoltaic systems across our portfolio, powering over 1,500 units and generating $1.3 million in annual energy revenue.

Build for Tomorrow

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The ArtHaus Partners Edge

Acquisitions identified using data, ahead of competition

We identify discounted and distressed acquisition opportunities by analyzing loan databases for early signals of distress, and utilizing our relationships with debt and multifamily brokers.

Track record of using government programs for density and solar

We have leveraged the state Density Bonus Law across 23 buildings and 1900+ units and State ADU legislation enabling up to 25% unit-count increase across 9 ADU projects. Our ~$4MWg solar installations powering 1500 units are designed to tap Inflation Reduction Act (IRA) Incentives, which REITs cannot.

Risk mitigation through efficient capital structure

We reduce our cost of capital by up to 170 bps through mission-based rate discounts from federal agencies, which affords us ~$1-2M in debt savings across the life of an average loan. We also underwrite the downside protection and maintain low leverage.

Design innovation & efficient construction

With decades of construction expertise, we efficiently develop small-format housing to add rentable square footage at lower cost. Our cost per residence is $250K vs the Bay Area average of $570K. Our timeline from acquisition to operation is 30 months vs the SF average of 72 months. We add units (ADUs) at a low ~$150K/unit cost.

Tech-enabled marketing & operational efficiency

We leverage technology to reduce leasing and operating costs including an integrated online leasing platform, virtual tours, and keyless entry. We've leased over 200 units without physical tours.

Value-add case studies

We have a decades-long track record of adding value to multifamily buildings.*
Exited
Retained
Contra Costa
1460 Contra Costa
2.46x
Gross equity multiple
2.9
Years held
$6.4M
Total profit
$10.8M
Total distribution

We purchased this off-market property with rents set at 60% of nearby institutional comparables. With extensive building repurposing and aesthetic upgrades, the rental rates beat those of local comparable properties with a basis of ~$13M.

*Performance figures shown gross of fees. Past performance is not indicative of future results.

Eastwood
1715 High St.
2.10x
Gross Equity Multiple
2.5
Years Held
$1.6M
Total Profit
$3.0M
Total Distribution

1715 High Street is a 33 unit apartment building in Oakland's Fremont. After executing unit upgrades, common area modernization, and building infrastructure improvements, we sold the building in 2016.

*Performance figures shown gross of fees. Past performance is not indicative of future results.

Rose on Bond
1638 47th Ave.

The Rose on Bond project renovated an existing church and adjacent building, converting it into 60 rental apartments consisting of studios, 1 bedrooms, and 2 bedrooms. We acquired the land on which this historic building stood for $1.8M and performed an extensive restoration valued at $13.4M that upgraded the interiors for modern living while maintaining its unique aesthetic. Now restored to its original beauty, this iconic building bridges the gap between the classic Spanish Revival style and elements of 21st century interior design.

Arthaus Grand
220 Grand Ave Oakland, CA

After purchasing the property in 2019 for $3.9M, we completed a 20-month, $6.5M renovation that retained only the shell of the building while modernizing everything else. The result was an expansion in unit count from 8 to 11 (which created a total of 33 rentable suites), thorough upgrades to the units and common areas, and significant aesthetic improvements to the exterior. The property now offers a mix of furnished and unfurnished suites with private kitchenettes, built-in storage, and natural lighting, as well as a community kitchen, package concierge, bike storage, smart locks, and a virtual doorman.

Oakbrook Case Study
value add case study

Oakbrook: a sucessful value-add strategy

When we acquired Oakbrook Manor at the height of the COVID-19 pandemic, it was an off-market opportunity with 200 units across three buildings. The property was suffering from poor management and had just 63% occupancy.

Key highlights:

Acquired at a discount

~$220K per unit, $9M below pre-pandemic value

Modernized common areas and upgraded amenities

Added 17 new units to boost revenue and density

Our strategy worked. Occupancy jumped to 94%, and net operating income more than doubled. The property was recently appraised at $293K per unit—a 45% increase in value and a clear validation of our value-add approach.

VIEW CASE STUDY

About ArtHaus Partners

ArtHaus Partners is a Bay Area-based real estate development and asset management company, focused on moderate-income and student housing in California. Operating in the Bay Area since 1977, we've profitably developed housing in California across 160 different residential and multifamily projects.

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FAQs

The ITC provides a federal tax credit equal to 30% of the cost of installing solar energy systems.

Contact us to invest in
B Bond and Solar Credit

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