San Francisco-based Carmel Partners Inc. announced the close of its third discretionary institutional real estate investment fund, Carmel Partners Investment Fund III, with total commitments of $700 million.
Through Fund III, Carmel Partners will continue to execute on its strategy of value-added investing in multifamily assets--selectively acquiring underperforming properties in markets with high barriers to entry that are supply-constrained, and making capital improvements to reposition the properties, according to Ron Zeff, Carmel Partner's founder and chief executive officer.
"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," said Zeff. "With 26 return investors and four 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."
With the close of Fund III, Carmel has raised equity totaling $1.7 billion, and the firm's investments so far consist of 68 properties with a total of 18,500 units. Carmel's investors include some of the...