Boston Capital Closes One Fund, Launches Another

Boston–Boston Capital Corp., a long-time player in multifamily investment, has closed one fund and is now putting another together for the acquisition of apartment properties. According to the Boston-based investor, competition for strong properties in solid markets will be stiff.

The closing fund, Boston Capital Tax Credit Fund XXXIV, is a nationally diversified portfolio of 39 affordable apartment properties in 17 states and the District of Columbia with a total fund size of $244 million. The fund represents an additional 3,238 apartment units to Boston Capital’s holdings, and includes 11 developments for senior citizens and 28 properties available to families.

All together, Boston Capital’s holdings include more than 2,400 apartment properties in 49 states and the District of Columbia, constituting nearly 159,000 units with a development cost of more than $13.4 billion. In fact, according to the National Multi Housing Council this year, Boston Capital is the largest owner/investor of apartment properties in the United States.

With this closing of Fund XXXIV, Boston Capital has invested $291 million in equity since January 2011. According to the company, the fund drew very strong investor interest due to its yield, as investors continue to be faced with low-yield alternatives in the current low-interest rate environment.

The company is currently launching Fund XXXV, a $305 million fund that is expected to close by the end of 2011. “As the market becomes more competitive, there are more and more offers per property,” Jeff Goldstein, COO and director of real estate at Boston Capital, tells MHN. “We are seeing the strongest competition from the direct buyers.”