(Mark Your Calendars: RealShare Apartments 2011, October 20 in Los Angeles).
LOS ANGELES-IMT Capital LLC has closed on its IMT Capital Fund II LP, an investment fund with $350 million in committed equity that plans to acquire multifamily properties in major markets throughout the US. Michael H. Browne, IMT Capital’s co-founder and managing director, tells GlobeSt.com that the fund has already acquired four properties in the Los Angeles area and expects to deploy the remainder of the capital in IMT Capital Fund II over the next three years.
IMT plans to add value through its in-house management, asset renovation and repositioning, leasing, development and capital markets expertise. In special situations, the fund may also provide equity or debt to recapitalize properties.
Browne says that the fund is generally seeking class A and B properties, "but the strategy is flexible and opportunistic, depending on where IMT uncovers exceptional value." He says the fund is not targeting any minimum deal size and "is free to make single asset acquisitions as well as portfolio acquisitions as opportunities present."
Generally speaking, IMT plans to place 70% loan-to-value debt at acquisition. Exits and hold periods will be determined by IMT's business plans and risk factors, and can vary depending on factors like what "active" value enhancement opportunity exists for an investment, including market conditions Browne explains.
Browne notes that IMT, which is a private real estate investment and management company, is a vertically integrated owner/operator. "The fund is well positioned to expand on IMT’s long history of investment and operational success," he says. "IMT continues to believe that this phase of the economic cycle favors rental product over for-sale product, and positive apartment fundamentals should support the firm’s investment strategies for the foreseeable future.”
This is the second discretionary investment partnership sponsored by IMT Capital together with its affiliate IMT Residential, which was founded in Los Angeles in 1992 and is a privately held full-service operator of multifamily residential communities. Since its founding, IMT and the joint ventures and funds that it has sponsored have transacted more than $2 billion in real estate. The current portfolio includes approximately $1.4 billion of real estate and more than 16,000 apartment units.
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