Broad Creek Capital Completes First Close of $150M Fund
The investment vehicle will focus on some of the nation's fastest-growing markets.
Broad Creek Capital has completed the first close of its $150 million BCC Multifamily Advantage Fund I, an investment vehicle anchored by U.S. and European municipal institutional and family office investors. Broad Creek Capital intends to invest BCC MAF I in essential housing communities where demographic and economic trends are propelling demand for rental housing.
The fund will focus on Sun Belt states, with a particular emphasis on the Southeastern U.S., home to many of the nation’s fastest-growing markets. A second close is anticipated for early next year.
High-growth markets
As part of the fund, the Broad Creek acquired Loft One35, a 298-unit multifamily community located in Charlotte, N.C. The $94 million off-market acquisition took place below replacement costs, with a value-add plan underway. Upgrades include new exterior paint, as well as a renovation of corridors, amenity spaces and some of the residences.
READ ALSO: Multifamily Continues to Rule CRE Markets
Located at 135 W. Morehead Street in Uptown Charlotte, Loft One35 was completed in 2016 and incorporates four six-and seven-story structures that fan out across a three-acre site. It features studio, one- and two-bedroom residences, along with two-bedroom townhomes and loft-style residences. Layouts range in size from 465 to 1,690 square feet. Amenities include a swimming pool, outdoor courtyard with fire pit and barbecue stations, pet spa, coffee bar and bike storage.
Broad Creek Capital has purchased more than 3,800 multifamily units in the last five years. The firm now manages more than $500 million in assets, with an investment thesis anchored in upgrading rental communities that are geared towards workforce income brackets. Earlier this month, an Ares real estate fund garnered $69.4 million in construction financing for the development of a 341-unit Class A Charlotte multifamily development.
