Cortland Closes 5th Fund at $650M

The vehicle will be used to acquire value-add communities in the Sun Belt.
Cortland at Raven. Image courtesy of Cortland

Cortland has closed its fifth multifamily fund that targets southeastern and southwestern U.S. states after it hit its fundraising limit of $650 million.

The company’s latest fund, Cortland Enhanced Value Fund V L.P., included legacy investors as well as new and existing institutional investors. The fund will be used to acquire value-add multifamily assets in high growth markets in the U.S., especially in the Sun Belt, according to Cortland.

According to SEC filings, the fund’s minimum investment is set at $75,000 and the first investment was made in August 2020.

Steven DeFrancis, CEO of Cortland, said in prepared remarks that the successful fundraising of Fund V showed the demand from institutional capital for the multifamily sector.

Cortland at Raven was one of the assets acquired through Fund V, according to Cortland. Located at 3606 E. Baseline Road in Phoenix, the community offers one-, two- and three-bedroom units that range in size from 823 to 1,298 square feet. The community’s amenities include a resident clubhouse, pool with spa, sun deck and fitness center.

TARGETING SUN BELT STATES

Ned Stiker, senior managing partner of investments and capital markets at Cortland, said in prepared remarks that Fund V would focus on growth markets in the southeastern and southwestern U.S. Stiker added in his prepared statement that Cortland would use its vertically-integrated operating platform to improve operations at the communities.

Fund V is Cortland’s fifth in its series of closed-end funds. While Fund V is focused on several markets, Cortland has also been increasing its portfolio in Phoenix. In October, the company purchased a 415-unit community in Tempe, Ariz. for $96.8 million, followed shortly by another acquisition in Phoenix of a 253-unit community for $117 million.