Mill Creek Launches $1.2B in Funds

Two of the vehicles will focus on single-family rental opportunities.

Mill Creek President, Chairman & CEO Bill MacDonald. Image courtesy of Mill Creek

Multifamily acquisition, development and management firm Mill Creek Residential has formed four new investment vehicles to invest in the U.S. residential rental sector. These include a pair of separately managed accounts to develop single-family rental communities, an investment partnership to develop multifamily communities and Mill Creek’s first commingled fund to continue its value-add acquisitions strategy. Together, these investment vehicles total $1.2 billion.

“We’ve identified a strong pipeline of acquisition and development opportunities across 29 target markets in the U.S., primarily focusing on the ‘smile’ states, including major cities on the West and East Coasts, along with high-growth Sun Belt markets,” William C. MacDonald, Mill Creek chairman, president & CEO, told Multi-Housing News.

“Our value-add acquisition strategy is primarily focused on acquiring high-quality, well-located multifamily assets below replacement cost and leveraging our vertically integrated platform to implement high-impact improvements through renovations and management efficiencies, maximizing value for residents and generating attractive risk-adjusted returns for investors,” MacDonald added.

Identified pipelines

The pair of managed accounts focused on single-family rental development represent newly formed investment programs. A first is with PCCP, a U.S.-based commercial real estate investment manager with more than $20 billion of assets under management. The second has been forged with a large global financial institution.

The investment partnership focused on multifamily development represents a follow-on commitment from QuadReal Property Group, a Canada-headquartered global real estate investment firm with more than C$70 billion of assets under management.

Mill Creek’s clients are represented in the Mill Creek Multifamily Value-Add Fund. Mill Creek anticipates executing on identified pipelines within the next 18 to 36 months, using the three development vehicles. Some of the communities included expect to begin construction within the next six months.

The firm anticipates the value-add fund will capitalize on an increasingly dynamic acquisitions environment in 2023. Four months ago, Mill Creek Residential commenced construction on a luxury apartment community in Beaverton, Ore.

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