Eagle Rock Advisors closed its second US apartment fund on more than $200 million at the end of July, the firm told PERE.
The New York-based firm launched UOB Eagle Rock Multifamily Property Fund II in January 2016 with a $200 million target, PERE previously reported. UOB Global Capital, the firm’s institutional partner and asset management arm of Singaporean bank UOB Group, committed $40 million to the value-added vehicle.
Other investors in the second fund include high-net-worth individuals and family offices, both domestic and international, and one unnamed pension fund, a spokeswoman said.
Eagle Rock is targeting a 13 percent net internal rate of return for the fund. Fund I, which closed in 2015 on $136 million, has generated a 50.6 percent gross internal rate of return and a 2.1x gross multiple on its realized investments, the spokeswoman told PERE.
The firm held a first close for Fund II in February 2016 on $85 million, which included UOB Global’s commitment.
Eagle Rock focuses on undermanaged apartment properties located in submarkets along Amtrak’s north-east corridor from Boston to Washington, DC that have at least 80 units. Additionally, the firm targets an average deal size of $45 million, seeking assets situated near public transportation and in strong employment centers with good school districts.
“Over the last fundraising cycle we have seen tremendous interest in the owner-operator model,” Mark Seelig, the firm’s founder, told PERE. “Additionally, there is a growing interest for suburban multifamily as investors seek higher yield opportunities in less saturated markets.”
The firm has deployed about $80 million of equity from the fund, buying 1,300 multifamily units in New York and New Jersey. Its most recent deal was the acquisition of five apartment complexes in Westchester County, a suburb of New York City.