NEW YORK CITY—TH Real Estate said Tuesday it had closed its latest multifamily club fund, CASA Partners VII LP, at $245 million. The fund will target a portfolio of approximately $400 million; it has already acquired seven geographically diverse properties.
“The CASA strategy takes an integrated approach, combining multiple value-enhancing investment strategies with income-enhancing, low-cost specialty bond financing to meet its goals,” says Jay Martha, TH Real Estate's head of US multifamily investments. “The team executing this strategy has worked together for decades, successfully navigating multiple market cycles, and we are pleased to have completed this latest fundraise.”
CASA VII drew the interest of three large US state pension funds that have invested in its predecessors, as well as a German pension fund. The previous fund in the CASA series closed at $260 million in September 2014.
Five of the properties already acquired through CASA VII are being financed with tax-free municipal bonds issued for the development or rehabilitation of market-rate housing. TH says this debt strategy provides below-market cost of financing for the fund and results in high-quality workforce housing where demand is high and can enhance income returns for the investors.
The seven properties acquired to date through CASA VII include the following: the Nine on Shoreline, Austin, TX; Waterstone Apartments, Los Angeles; Bristol Village, Minneapolis; the Pillars at Great Bridge, Chesapeake, VA; Ivy Hill, Walnut Creek, CA; the Landings, Coconut Creek, FL; and Rancho Hills, San Diego.
“Institutional investor interest in US rental housing remains strong, reflecting the opportunities created by the current economic and demographic trends impacting this sector,” Martha says.“As one of the largest multifamily investors in the world, our varied strategies for investment in US housing are designed to meet the broad demands of a large and diverse renter pool.” TH currently has $10 billion in US multifamily assets under management, representing 32,000 units.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
