Bridge Moves $550M of Assets to New Fund

This step marks the first time the investor has closed this kind of vehicle.

TL Residences, a San Francisco property Bridge Investment co-owns with Forge Development Partners. The identity of the projects owned by Bridge Multifamily Fund III could not immediately be learned. Image courtesy of Forge Development Partners and Bridge Investment Group

An investment vehicle of global real estate investment manager Bridge Investment Group, Bridge Multifamily Fund III, has sold a portfolio of assets valued at $550 million to Bridge Multifamily CV LP, a continuation fund, to support further investment in the portfolio.

The transaction, which included equity raised by the continuation fund, also offered liquidity to existing limited partners in Bridge Multifamily Fund III, who could opt to either keep their investment in the continuation fund or liquidate it.

Calling the move an important milestone for Bridge, CEO Jonathan Slager noted in a prepared statement that this was the firm’s first closing of a continuation fund. Several leading institutional investors joined Bridge as partners in the fund. The firm did not disclose details about Bridge Multifamily Fund III, including the number or locations of assets contained in the portfolio that was recapitalized as part of the new continuation fund. Representatives of Bridge did not respond to inquiries.

Latham & Watkins was Bridge’s legal advisor, with Evercore acting as financial advisor on the transaction.

Multifamily Strategy

In the same prepared remarks, Slager stated that the multifamily sector continues to prove its resiliency and growth potential and remains one of the firm’s highest conviction themes for investment.

In late January, Bridge closed its Bridge Multifamily V Fund with $2.26 billion in equity commitments, the largest dedicated multifamily fund ever raised. The fund surpassed the previous record, the $2.2 billion Lennar Multifamily Venture raised by Lennar Corp. in 2014, and its own Bridge Multifamily Fund IV, which closed at $1.6 billion in 2018, according to the website Pere. At that time, Salt Lake City-based Bridge had deployed between 25 and 50 percent of the capital raised for Multifamily Fund V, which focuses primarily on value-add, Class B multifamily housing properties in high-growth markets with strong macroeconomic prospects.

The closing of the continuation fund comes nearly a year after Bridge completed fundraising for Bridge Workforce and Affordable Housing Fund II with $1.74 billion in equity commitments. That fund surpassed its goal of $1.5 billion and focuses on building, preserving and rehabilitating primarily non-government subsidized housing where a minimum of 51 percent of residents earn less than 80 percent of Area Mean Income.

With nearly $49 billion of assets under management, Bridge invests in various commercial real estate sectors, including residential, office, logistics, net lease and development. When investing in multifamily properties, Bridge focuses on value-added renovations to individual units and competitive amenities, which often include a health facility, business center and recreational areas, as well as social and community programs like after-school homework programs for school-aged children and movie nights, ice cream socials and other events.

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