Real Estate Private Equity Co. Raises $222M  for Multifamily Fund

By Anuradha Kher, Online News EditorChicago–Waterton Associates LLC, a Chicago-based real estate private equity firm, raised $222 million of equity capital for its Waterton Residential Property Fund X. The fund is the fourth joint venture between Waterton and the California State Teachers Retirement System (CalSTRS) and targets value-added and opportunistic multifamily investments nationwide. This includes the acquisition of distressed properties as well as performing and non-performing multifamily debt. With the equity commitments and maximum allowable debt, the total capitalization of the fund is $635 million.The Parc at Pruneyard, a 252-unit property located near downtown Campbell in California’s Silicon Valley, is the first purchase for Waterton Residential Property Fund X. With a median household income of 75,000, a median home price near $700,000, and a highly regarded school system, the city of Campbell a desirable apartment market, according to Mark Stern, senior vice president of acquisitions at Waterton Residential.The property is within close proximity to the area’s major employers, such as eBay, Apple and Adobe Systems, and it is near several major highways, shopping malls, and restaurants.Built in 1968 on 8.5 acres, the property consists of 10 two-story residential buildings, a pool and picnic/barbecue area, and a community clubhouse that includes fitness and billiard rooms. The Parc at Pruneyard features two floor plans, a 750-sq.-ft., one-bedroom/one-bath unit, and a 950- sq.-ft., two-bedroom/one-and-a-half bath unit. The units have washer/dryers, patios or balconies, and air conditioning.“Our plan is to rehabilitate the interiors as well as improve the curb appeal of the asset, in order to compete with the newer properties,” says Stern.