MuniMae has supplied $64 million for the acquisition of equity interests in 18 Capreit property partnerships. The company will give $11 million more for its share in Capreit's property investment activities over the next year. But the majority of the $175-million pledge comes into play with MuniMae's plan to commit $100 million to the partnership over a three-year period beginning in 2003.

"We view this venture as an excellent opportunity to build upon our longstanding relationship with Capreit," MuniMae Chairman and CEO Mark K. Joseph says. "Joining with them provides MuniMae with an ongoing vehicle to invest in a diverse portfolio of multifamily properties managed by a highly capable partner. The properties have steady cash flows and a good potential for appreciation. Further, we expect the venture will lead to new investments in tax-exempt bond financings." Capreit's portfolio consists of 55 multifamily apartment communities across 17 states.

MuniMae's $100 million cash infusion is not written in stone and could be altered according to future market conditions. "There's a very strong intention to provide $100 million, but it's not legally binding," Capreit senior vice president Ernie Heymann tells GlobeSt.com. "They anticipate providing that capital and we anticipate investing it." As for immediate acquisitions, "we don't have any specific properties under contract," Heymann notes. "We do have letters of interest pending on several Washington-Baltimore area properties." Capreit's properties are in the Mid-Atlantic, Southeast and Midwest regions.