IEC Closes 5th Institutional Fund at $445M

The investor is targeting value-add communities on the West Coast.

IEC Team. Image courtesy of IEC

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.

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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.

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