Continental Properties Closes 2 Funds at $1B

Fourteen communities were acquired through the vehicles.

Image courtesy of Continental Properties

Continental Properties Co. has closed on two of its latest funds with a total value of $1 billion.

The company closed on its Real Estate Income Fund III L.P. and its Real Estate Income Fund IV L.P., which both were amongst investors, Dan Minahan, president & COO of Continental Properties, said in prepared remarks.

According to Continental Properties, the funds placed 100 percent of the committed capital into acquiring two portfolios totaling 14 apartment communities that were developed by Continental Properties.

Like its previous Income Funds, Fund III and Fund IV are made up of high-quality, newly-constructed suburban communities that have a proven operating performance. According to the company’s website, the targeted geography of its Income Funds includes Arizona, Colorado, Texas, Minnesota, Wisconsin, Michigan, Illinois, Kentucky, Tennessee, North Carolina, Georgia and Florida. Continental Properties said the funds will begin making distributions to its investors in the first quarter of 2022.

Continental Properties’ previous fund in the series, Income Fund II, closed in April 2021 with $206 million of equity and a total portfolio value of $588 million.

WORKING ON SECOND DEVELOPMENT FUND

The company has also been working on its series of Real Estate Development Funds, closing its Real Estate Development Fund I L.P. in January 2021 after raising $180 million of equity. The development fund will be able to support total development costs of more than $850 million and is anticipated to be fully deployed by the middle of the first quarter, Minahan added in prepared remarks.

The company is currently fundraising for its Development Fund II that will be used to invest in Continental Properties’ Springs, Authentix and Avanterra branded communities over the next 18 to 24 months.

This year, Continental Properties closed four of its real estate funds, raising more than $730 million of equity. In total, the company currently manages more than $880 million of equity across five funds with a total portfolio value of $3.1 billion.

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