Eagle Rock holds first close on apartment fund

The New York-based firm is back on the fundraising trail after closing the predecessor vehicle just last year.

Eagle Rock Advisors has held a first close for its second multifamily property fund, PERE has learned.

The New York-based firm collected $85 million of capital in a first close on January 22, including a $40 million re-up from its institutional partner, UOB Global Capital, for UOB Eagle Rock Multifamily Property Fund II. UOB Global is the asset management arm of Singapore-based financial services firm UOB Group.

Eagle Rock has a $200 million target for the value-add vehicle, for which it is seeking an 11 percent to 15 percent net internal rate of return, sources with knowledge of the fund said. Investors in the second fund, in addition to UOB Global, include high-net-worth individuals and family offices, both domestic and international. The firm is also seeking capital from domestic pension funds and endowments for its latest vehicle.

Eagle Rock has deployed about $115 million from the fund across several investments so far. The firm focuses on undermanaged apartment properties with at least 80 units in submarkets along the Northeast corridor that were built between the 1950s and 1990s. Eagle Rock looks for assets near public transportation and in strong employment centers with good school districts.

The firm launched UOB Eagle Rock Multifamily Property Fund I in November 2011 and closed the vehicle last year with $136 million in equity.

Eagle Rock was founded in 1995. The firm currently controls more than 5,000 units throughout the Northeast with a gross asset value of more than $900 million.