The Milestone Group Closes Fund With $750M

The vehicle is expected to invest in more than $2 billion of multifamily assets.
Pavilions at Arrowhead. Image courtesy of The Milestone Group

The Milestone Group has closed Milestone Real Estate Investors V LP, with capital commitments of $750 million and is expected to invest in more than $2 billion of multifamily assets across the U.S.

Fund V has already committed about $120 million of capital in several transactions including acquisitions in Arizona and Maryland.

Fund V is Milestone’s 18th investment vehicle and fifth discretionary fund focused on the U.S. multifamily sector. The investors represented a wide range of U.S. and foreign institutional investors including public and private pension funds, endowments, foundations, insurance companies and other financial institutions.

A discretionary investment vehicle, Fund V acquires value-oriented Class A and B multifamily properties across the U.S., primarily targeting major, growth markets in the Sunbelt and Mid-Atlantic. The fund has a broad mandate which includes existing assets, underperforming new construction and partnership recapitalizations.

Chris Bartlett, head of capital markets at The Milestone Group, said in a prepared statement the firm’s ability to raise $750 million during the pandemic is a testament to its investor base and underscores its track record as a management firm with a top performing fund.

Now that Fund V has had its final closing, The Milestone Group will be aggressively pursuing direct asset and portfolio acquisitions as well as partner recapitalizations where it can provide capital growth to implement revitalized business plans. The firm has made more than $8 billion of multifamily investments totaling more than 80,000 units.

Fund Deals

Two of the fund’s recent acquisitions were made in Arizona—the 200-unit Alta Mesa in Mesa, Ariz., and the 248-unit Pavilions at Arrowhead in Glendale, Ariz., which was purchased for $43.3 million from Avanti Residential, according to Yardi Matrix data. The property is about 21 miles from downtown Phoenix.

In January, Fund V also acquired the majority stake in The Villages at Decoverly, a 564-unit garden-style apartment community in Rockville, Md., from an unidentified foreign investment firm. The minority interest is held by Stellar Advisors, which manages the property. The purchase marked the firm’s entry in the Washington, D.C., market.