Continental Realty Corp., in partnership with Brown Advisory, has closed a $146 million private equity fund targeting core multifamily acquisitions in high-growth Southeastern U.S. markets. Core Multifamily Fund LP, will be focused on Class A garden and mid-rise communities built within the past four years that are stabilized or near-stabilized opportunities.
Most of the investments will be capitalized with long-term, fixed-rate debt, according to Ari Abramson, CRC’s vice president of acquisitions. He said in prepared remarks the firm has deep relationships within the lending community and is a Fannie Mae and Freddie Mac preferred borrower as well as a HUD-approved borrower.
With this closing, CRC has executed multifamily and retail investment funds totaling approximately $850 million in equity commitments. In August 2019, CRC closed Continental Realty Fund V LP, after raising about $210.8 million in private equity funds. That fund targeted value-add multifamily and retail properties in the Mid-Atlantic and Southeast.
The new fund with Brown Advisory, also known as the partnership, is an open-ended fund that that was formed to create a long-term vehicle for core multifamily investment and will acquire a diversified, high-quality portfolio of newly constructed, income-generating multifamily properties in the Southeast region, where CRC has been investing since 1996, according to JM Schapiro, CEO. Schapiro said in a prepared statement the firm’s deep understanding of Southeast markets combined with current market conditions, especially the job and population growth in that region, has created an optimal time to invest in a core multifamily strategy for long-term holds. He noted CRC and Brown Advisory, a global private investment management and strategic advisory firm, have worked together for nearly 30 years.
CRC owns and manages a portfolio of more than 9,000 apartment homes, as well as retail and commercial properties consisting of more than 6 million square feet across 10 states and valued at more than $3.2 billion. Since 2017, CRC has acquired 3,200 multifamily units, including more than 1,000 units of newly developed or best-in class properties through five off-market transactions. The properties include Edison Lofts and St. Mary’s Square in Raleigh, N.C.; The Flats at Ballantyne and Park & Kingston in Charlotte, N.C.; and Central Island Square in Charleston, S.C. CRC expects to buy similar properties through the new partnership. CRC acquired 175 units at Sweetgrass Landing Apartments in Mount Pleasant, S.C., for $55.5 million in March on behalf of Continental Realty Fund V.