Boston Capital Closes MF Fund With Eyes On The Next One
It plans to realize more than $350 million in acquisitions of multifamily properties in the US.
BOSTON–Boston Capital has announced the final closing of the Boston Capital Income and Value US Apartment Fund, or BCIV. The fund is a multi-investor, discretionary and Luxembourg-based vehicle of funds. Investors include financial institutions, insurance companies, pension funds and wealth management offices. Boston Capital expects to realize more than $350 million of apartment acquisitions in the US via the fund.
Namely the fund is targeting Class B apartments in major and secondary markets that have a discounted lease rate level below new construction. It says this is a segment of interest to upper and middle-income renter profiles, especially after renovations are done to the properties.
So far BCIV has made four acquisitions, for a total of 1,330 units, with the Costa Apartments in Dallas being the latest.
It is currently renovating three previously acquired properties in Atlanta, Phoenix and Charlotte. The fund plans to acquire two or three additional properties by early 2019.
Mark Dunne, CEO of BCRE, said that the company plans to close the investment phase in the next 9 to 12 months, and start the next fund in this series early next year.
Citigroup Global Markets acted as placement agent for BCIV.
Boston Capital is one of the top apartment owners in the US with more than $ 19.6 billion invested.
A Flurry Of New Funds
BCIV is launching as other vehicles start to emerge after a period of slow fundraising, according to Preqin figures. Canyon Partners has closed a real estate debt fund with more than $450 million in commitments from which it will originate senior and subordinate debt in US markets. Blackstone Group reportedly plans to start raising its next global private equity fund and will seek more than $20 billion. Senior housing operator LCS recently closed on a $300 million equity senior housing joint venture with an unnamed institutional investor.
More compelling are the reported plans by Sterling Organization to launch a $500 million real estate fund that will invest in the distinctly unfavored retail asset class, according to the Wall Street Journal.