ECI and ApexOne Investment To Launch $500M Multifamily Fund
ECI Group and ApexOne Investment Partners have formed a joint venture to establish a fund that will focus on multifamily investment across multiple regions in the U.S.
Under ApexOne-ECI Multifamily Fund VI, LP, a $500 million equity capitalization will be targeted. Investments will include leasing, management, redevelopments and upgrade duties for high-quality institutional multifamily assets. Namely, the two partners list workforce housing communities with value-add potential as properties of interest.
The fund's focus will be on new and existing properties, as opposed to ground-up projects. The regions of interest are the Midwest, Sun Belt and Mountain West.
The goal for the JV during its approach is to generate market appreciation and strong cash flow.
Both ECI and ApexOne see an opportunity to capitalize on the current weakness in the housing sector, as owning remains out of reach for many.
"Our Fund investment strategy focuses on our shared belief in, and experience with, compelling investment opportunities driven by disruption in the multifamily sector," ECI Chief Executive Officer and Chief Operating Officer, Seth Greenberg, said in a statement.
"These conditions include distressed sale conditions, near-term supply and demand imbalances, and affordability factors in single-family home ownership for many single- and double-income families. We also expect to capitalize on undercapitalized and under-managed conditions at many target assets, bringing ECI's exceptional track record in multifamily operations to bear to improve occupancy, elevate resident satisfaction, and increase marketing efficiencies."
Ernest Johnson, partner and executive managing director of ApexOne, added that ECI's experience in the residential sector and ability to implement AI across key business approaches like leasing and community engagement made ECI the perfect match to partner with.
Additionally, the two firms bring prior experience in tapping into the Midwest, Southwest and Sun Belt regions. They have combined to invest more than $7 billion through the development or acquisition of roughly 50,000 multifamily units or 160 communities in the areas. Plus, both senior executives of the co-general partners offer more than 300 years of experience in multifamily in general.
Source: GlobeSt/ALM