Interstate Equities Corp., a Los Altos, Calif.-based value-add investor, has closed on IEC Institutional Fund V after reaching $445 million in equity commitments. Goodwin Procter LLP was the legal advisor for the fundraise.
The company surpassed the initial cap of $400 million in seven months after launch, without using a banker, based on partnerships with investors. The fund intends to acquire, reposition and upgrade value-add communities across California and Washington. As part of its overall strategy, the company targets the Bay Area, Orange County, Greater Los Angeles, San Diego and Seattle.
Investment also focuses on value-add communities in lacking markets and turning them into boutique-style assets, besides investing in workforce properties, mentioned Co-President & CIO of IEC Marshall Boyd, in prepared remarks.
IEC launched its fund platform in 2002 and has since closed five funds with total equity commitments of more than $1 billion. In 2018, the company closed on IEC Institutional Fund IV, after raising $300 million.
In the past year, IEC bought roughly $700 million in multifamily assets. Most recently, the company acquired The Bryant at Yorba Lind, a 400-unit community in Yorba Linda, Calif., for $205.5 million and another 146-unit property in Mission Valley, Calif.