Carmel Partners, announced today the final close of its U.S. multifamily real estate value creation fund, Carmel Partners Investment Fund VI. The Fund closed at $1.025 billion, exceeding its target of $1.0 billion.
With the closing of Fund VI, Carmel Partners has successfully raised $4.2 billion since inception of the fund series in 2004. More than 35 existing and new investors participated in Fund VI, including several European investors.
Our focus for Seattle is more on the east side of Seattle in the market of Bellevue and Redmond. We think there are some strong opportunities in this region
Carmel Partners focuses on multifamily investments, including property development and construction in supply-constrained, high barrier-to-entry U.S. markets.
Fund VI has already made its first investment, in Oakland, California. Carmel will develop a full block-sized site located in the center of the economically vibrant and evolving downtown area, convenient to jobs and public transportation.
Ron Zeff, Founder and CEO of Carmel, said in a statement today, “We are pleased to announce the successful closing of Fund VI, which we believe confirms our investors’ confidence in the Carmel value creation strategy: our multifamily sector focus, precise execution and a vertically integrated platform with deep in-house expertise.”
The investor will be looking for both new development opportunities and the acquisition of existing assets. “We are currently favoring new developments deals over existing purchases. We think that we can develop properties at a cost basis that is 20 percent to 30 percent lower than a price point to buy and renovate an existing asset,” said Rich Bennion, senior vice president of investor relations for Carmel Partners.
The company has several target markets that it wants to invest capital into going forward. These would be Northern California, Seattle, Southern California, Honolulu, Denver, New York City metro and Washington, D.C. Carmel Partners has a typical holding period on its assets that lasts for five to seven years.
Seattle is a market that the manager is watching closely. It’s aware of all of the units being added to the market in the downtown region. “Our focus for Seattle is more on the east side of Seattle in the market of Bellevue and Redmond. We think there are some strong opportunities in this region,” said Bennion. The company currently owns 618 units in Seattle that are in the process of being developed.