CREC Closes Value-Add Fund at $80M

Eight Sun Belt properties have been acquired through the vehicle so far.

River View. Image courtesy of CREC Real Estate

CREC Real Estate has closed its second real estate fund that targets value-add communities in secondary markets across the U.S. The firm’s fund, CREC Real Estate Fund II L.P., closed with $80 million in investor commitments.

A company spokesperson told Multi-Housing News that the fund primarily saw returning high net worth investors and family office investors but also had a few new investors, including a large institutional client and other high net worth and family office clients.

CREC’s Fund II targets markets that are seeing job and population growth along with an undersupply of housing. So far, CREC’s Fund II portfolio includes eight assets, totaling approximately 1,560 units, the spokesperson told MHN. The communities are located in Atlanta, Cincinnati, Seattle, Phoenix, Tucson, Ariz., Hilton Head Island, S.C., and Charlotte, N.C.

The fund is planning to increase the asset values at each community through its strategy of incorporating more efficient management, unit interior renovations, deferred maintenance and improvements to the amenities. According to CREC, the end result is an improved apartment community with upgraded interior finishes and amenities that attract modern renters.

More acquisitions in 2022

The CREC spokesperson also told MHN that there are three potential assets currently in the due diligence pipeline for the fund, located in Dallas, Indianapolis, and Charleston, S.C. CREC said the two acquisitions in Dallas and Charleston are in contract, but that overall the firm is expecting to make a total of four additional acquisitions throughout 2022.

Jeff Coopersmith, founder & chair of CREC, said in prepared remarks that the firm recently closed on its 54th real estate investment after 20 years of being a sponsor. Since its founding in 2001, CREC’s portfolio now totals more than $1.2 billion in assets under management and includes communities across 18 states, including in Texas, where the firm recently received a $37.5 million refinancing for its 194-unit senior housing community in McKinney.

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