Carmel Partners Closes $1.6B Fund
A wide array of U.S. and international investors piled into the oversubscribed vehicle.
San Francisco-based Carmel Partners has closed Carmel Partners Investment Fund 8, its largest fund to date, at $1.58 billion. The U.S. multifamily real estate value creation fund exceeded its $1.5 billion target.
Investors included U.S. and international pension funds, endowments, foundations, insurance companies and select high net worth individuals and family offices. The firm closed its seventh fund in December 2018 at $1.28 billion. Carmel has successfully raised more than $7 billion since it launched its fund series in 2003. Founder & CEO Ron Zeff said, in prepared remarks, that the firm is grateful for the continued support of existing investors and welcomes new ones.
Founded in 1996, Carmel focuses on multifamily investments in supply-constrained, high barrier-to-entry markets in the United States, including Northern and Southern California, Boston, Denver, New York, Seattle and Washington, D.C. Carmel has bought and renovated, developed, or is in the process of renovating or developing more than 50,000 apartment units. The firm, which has offices in San Francisco, Los Angeles, New York, Denver, Seattle and Washington, D.C., has also made 22 debt investments with a combined estimated gross value of more than $19.5 billion.
In the largest multifamily deal so far this year, Carmel acquired Westlake Village Apartments, a 2,983-unit community spread out over 47 acres and six sites in Daly City, Calif., from Gerson Bakar & Associates in January for $675 million.
On the East Coast, Carmel is developing Lumen, a 938-unit apartment project in the Long Island City neighborhood of Queens, N.Y. The development will include more than 20,000 square feet of retail space and 65,000 square feet of amenity space. The firm purchased the Court Square site from Stawski Partners last year for $200 million, according to media reports. The high-riseis expected to be completed by September 2026.
In February 2022, Carmel sold The Cole, a 22-story,163-unit apartment community on Manhattan’s Upper East Side at 354 E. 91st St. to a joint venture between Stonehenge NYC and Stockbridge Capital Group for $128.2 million.