Capital Spotlight – Highlighting featured capital investors. We regularly publish the detailed criteria of our most unique real estate capital sources.

Vintage has become a crucial factor for many private equity groups and family offices intent on deploying equity capital. With these groups inundated by offers from brokers and sponsors, and a tightening capital markets environment, investment criteria have become increasingly selective. Nowadays, properties built prior to the 21st century are often dismissed outright by many investors.

However, this private equity group diverges from the norm by specifically targeting multifamily properties built after 1975. They are actively deploying equity investments of $2-10MM into light value-add opportunities primarily in the Southeast. This focus not only distinguishes them within the competitive landscape but also aligns with sponsors looking to enhance multifamily units through minimal capital expenditures ($10k-$20k per unit) and achieve attractive yields (6.00%+ going-in cap rate).

Capital Type

LP Equity

Geography

Nationwide, emphasizing the Sunbelt and Southeast region, notably avoiding rent-controlled areas

Property Types

Multifamily

Vintage

Mid-70’s or later

Use of Funds

Acquisition or Recapitalization

Construction

Light (10-20K / Unit)

Sponsorship

Preferring partnerships with established local sponsors. Looking for sponsors who have completed at least 2-3 similar transactions.

Check Size

$2MM – $10MM

Investment Contribution

70/30 to 90/10

Target Returns

16.0%+ (Net LP)

Target Multiple

2x over 3-5 year hold

Hold Period

3-5 years

Focused Underwriting Metrics

Focused on going-in cap rates north of 6.0%. (Market dependent, ideally seeking 6.5%+ for vintages between 1975-1980)

Closing Time Frame

30-60 days

If this capital source may be of interest, book a call to discuss a potential capital arrangement.

Read our last Capital Spotlight: How a $10B+ Canadian Fund Meets U.S. CRE Senior & Subordinate Debt Needs