Kinect Real Estate Partners Closes $127M Fund
The platform will target new development and value-add opportunities.
Kinect Real Estate Partners has closed Kinect Opportunity Fund II, a $126.5 million multifamily and commercial real estate investment vehicle. The fund initially targeted $100 million in investments.
The vehicle will target development and value-add multifamily opportunities across high-growth markets in the western U.S. More than 100 investors, including high-net-worth, ultra-high-net-worth individuals and family offices contributed capital.
Capital from the fund is already being deployed across three value-add investments and will also finance development projects in Bellevue, Redmond and Bothell, Wash., as well as Mountain View and San Diego, Calif. The development pipeline totals approximately $1.6 billion and more than 3,000 apartment units across nine projects.
Projects in the pipeline include Carbon, a 367-unit development in Redmond expected to break ground in October, and Quincy, a 321-unit project in Bothell that will start construction in December. Kinect told Multi-Housing News that four additional projects are slated to begin in 2027, with three more expected in 2028.
The fund was originally designed with an approximately even split between development and value-add acquisitions. However, Kinect said current market conditions have shifted the strategy toward the former sector. Approximately 60 percent of the fund has already been allocated, with plans to pursue at least three additional development projects and rapproximately eight value-add acquisitions.
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According to the company, the fund is part of Kinect’s strategy to expand access to institutional multifamily investments through the private wealth channel, targeting registered investment advisors, family offices and high-net-worth investors.
Kinect was formed in 2025 by BJ Kuula and Mike Paulus and is affiliated with American Capital Group, a vertically-integrated multifamily developer and operator based in Bellevue. According to the company, ACG has partnered on project-level investments with firms including Blackstone, PGIM, Canyon Partners, Clarion Partners, Artemis, New York Life and Hartford HIMCO.
Multifamily fundraising continues
As of January 2026, real estate fundraising increased 29 percent year-over-year, marking the first annual increase in fundraising volume since 2021. In 2025, opportunistic investment vehicles accounted for 33 percent of total capital raised, up from 18 percent in prior years.
Earlier this year, Middleburg closed its third GP fund with $125 million in capital commitments. The vehicle will finance the development of 40 multifamily and build-to-rent communities across high-growth U.S. markets.
