by Richard J. Henken

Smart investors are continually on the lookout for opportunities to earn strong risk-adjusted returns. A fresh, little-known asset class can reward investors who understand its hybrid benefits. In strong markets, projects backed by the Department of Housing and Urban Development provide a unique opportunity to combine bond-like fixed-income properties with the potential for growth through real estate appreciation.

The developer of Newport's Brick Marketplace, who owns 100 acres off Route 116 here, is among a number of business-oriented leaders about to unveil their vision for the creation of two new villages in town.

Last September and October, housing officials sat across a table from the owners of Starrett City, the nation's largest privately owned affordable housing complex, located in Brooklyn, N.Y. Armed with a stack of market studies and financial statements, officials argued Starrett City would provide the owners a stronger and more predictable return if kept affordable than if Starrett City Association attempted to remove the property's income restrictions.

Recent months have seen a second wind for the historic Brick Market Place, thanks to the ongoing renovation efforts of Schochet Associates, a development and property management company located in downtown Boston. Boasting over four acres of retail along America's Cup Ave., Brick Market Place has long been a treasured shopping destination in the city, and now sees a bright future as a centerpiece to the economic revitalization of the city's historic downtown area.