NEW YORK CITY—The Related Real Estate Recovery Fund has acquired a portfolio of 21 multifamily apartment properties comprised of 3,128 apartment units in Midland, Odessa and Longview, TX. The properties were sold for about $300 million by the Pivotal Group. The Related Cos., which runs the fund, reports it expects to improve the portfolio by implementing institutional-quality management practices and investing significant capital to upgrade the properties.

Says Justin Metz, managing principal of Related Fund Management, “Our Real Estate Recovery Fund has once again identified properties with enormous potential and ideal matches for our skill-set and fully integrated execution strategy. With the exception of the past five years, the Midland/Odessa region experienced an extremely limited amount of new construction and capital upgrade investment since mid-1980s, creating a gap in the marketplace. We seek to be a premier provider of institutional quality rental housing in the area to meet the growing demand. We will also continue to pursue multi-family rental properties in markets nationally that will benefit from job creation resulting from the recent surge of energy exploration and production.”

The Related Real Estate Recovery Fund closed in January 2012 after raising $825 million in equity commitments. Related Fund Management currently manages approximately $3 billion of capital on behalf of sovereign wealth funds, pension plans, multi-managers, endowments and family offices across three areas: distressed real estate opportunities, origination and acquisition of debt, and multi-family housing opportunities.