Markets & EconomyRentals

New funds, joint ventures signal busy second half of 2015

Riskier and rarer development opportunities mean more partnerships

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

A number of multifamily owner/operators and real estate investment trusts (REITs) have openly expressed plans to be more active in the acquisitions arena during the second half of 2015. A grouping of these firms will acquire rental properties utilizing capital from recently launched funds. An increase in the formation of newly established funds indicates that more investors want to commit at least $5 million toward larger multifamily investment vehicles. Continental Realty Corp. just launched its fourth investment fund, which received nearly $165 million in private equity. The fund will target value-add acquisitions in the Mid-Atlantic and Southeast, typically via off-market transactions. Another buyer focused on value-add, Grubb Properties, launches its fifth fund that will focus on deals in Southeast-located secondary and tertiary markets. Recent acquisitions by the firm have occurred in Savannah, Georgia, and in Charlotte, North Carolina, and Greenville, South Carolina. ...