Boston Capital Real Estate Partners, the third largest apartment owner in the U.S., just closed the Boston Capital Income and Value U.S. Apartment Fund. The fund has enough juice to add $350 million of apartments to Boston Capital's multifamily empire.
BCIV is a Luxembourg-based fund vehicle with a stable of investors ranging from financial institutions and insurance companies to pension funds and family offices.
The BCIV strategy is value-add all the way. BCRE is sniffing out Class-B apartments worthy of renovation in primary and secondary markets across the U.S.
BCIV is the latest iteration in a series of funds BCRE has geared for value-add acquisitions and renovations. BCRE's appetite for value-add product is indicative of continued demand for value-add deals across the entire U.S. multifamily market. Investors have not let up on their appetite and are still showing strong preference for this type of deal. Thus, competition in the value-add market is getting tighter and tighter. Most, if not all, of the obvious value-add opportunities have already been snatched up.
These days, it takes a much more discerning investor to find the diamonds in the rough. Nevertheless, BCRE is excited to throw some fresh capital in the value-add ring.
“We are excited to close BCIV as we continue to innovate the structures and strategies of our apartment investment offerings. With support from our institutional investment partners, BCIV locates and extracts untapped value from existing multifamily properties in infill suburban ring locations in primary and secondary metropolitan areas across the U.S.,” BCRE Managing Director Mark Dunne said in a statement.
So far, the investment fund has bagged four assets in four states. One each in Dallas, Atlanta, Phoenix and Charlotte which brings the fund’s unit total to 1,330 units with more to come in the near future. According to its release, BCRE intends to add two to three more properties to the BCIV portfolio by early 2019.
“With four high-performing assets already in the fund, we plan to close out the investment phase within the next nine to 12 months and begin marketing the next fund in this series by early next year,” Dunne added.
