Carmel Partners has closed its third multifamily fund, Carmel Partners Investment Fund III, on $700 million (€492 million). The fund will target value-add opportunities in the US multifamily market.
“We are pleased to close our third fund at a size that will allow us to continue executing on our core investment strategy as we also look to take advantage of our powerful in-house capabilities, market inefficiencies and prudent growth opportunities,” Ron Zeff, Carmel’s founder and chief executive officer, said in a statement. “With 26 return investors and 4 new investors, we believe the market has expressed its confidence in our strategy, which has endured numerous market cycles to consistently produce strong risk-adjusted returns.”
The latest fund brings Carmel’s total equity to $1.7 billion with a portfolio of 68 properties totaling 18,500 units.
The firm closed its second real estate investment fund in 2005 with $400 million in equity commitments. Like the firm’s debut fund, Carmel Partners Investment Fund II focuses on the acquisition, development and renovation of multifamily properties.
Last month, the firm acquired a six-property, $191-million multifamily portfolio through its second fund. The portfolio included Timberwood Apartments in Aurora, Colorado; Skyline Park Apartments in Kent, Washington; Villa Pacific Apartments in Westminster, California; One Belmar Place in Lakewood, Colorado; Tustin Park Apartments in Tustin, California; and Piedmont Apartments in Bellevue, Washington.
Founded in 1992 by Ron Zeff, Carmel targets multifamily investments in the US and is currently pursuing value-add apartment properties, ground-up developments and joint venture deals in Northern and Southern California, Seattle, Denver, Washington DC and Hawaii. The firm also has offices in Irvine, Denver, Seattle, Washington DC and Honolulu.