Waterton Closes $1.5B Multifamily Investment Fund
- Feb 15, 2021
Real estate investor and operator Waterton has closed its Waterton Residential Property Venture XIV L.P. The fund has obtained $1.5 billion in equity commitments from a wide-ranging array of international institutional investors, and stands among the largest dedicated U.S. multifamily value-add funds.
Waterton expects to identify a substantial number of opportunities in the multifamily sector, and these should appear nationwide as a result of the COVID recession, the company said in a statement. The fund provides a distinctive opportunity for Waterton to employ a strategy it has used successfully for a quarter century, which calls for leveraging cycle-specific opportunities. It believes those to be currently abundant.
Waterton held the first close for Venture XIV last spring, and the final close this month. Waterton’s in-house investor relations team raised the capital without use of a placement agent. Kirkland & Ellis LLP served as the legal counsel.
Venture XIV was first deployed in the acquisition of a four-property, 1,824-unit Atlanta metropolitan area portfolio. That acquisition closed on Nov. 5, 2020.
After that initial foray, a two-property Hawaii portfolio and three California assets were acquired. As was the case with an earlier $920 million fund in 2018, Venture XIV will pursue urban and suburban opportunities in major U.S. markets. The emphasis will be placed on acquisition of well-located, well-maintained workforce housing in markets with favorable job growth, good employment metrics and solid transportation logistics.
In addition to cycle-specific distressed opportunities, Waterton will target traditional assets with Venture XIV, both benefiting from Waterton’s vertically-integrated design, construction and operations strategy. Plans for Venture XIV call for investing more than $4 billion, including debt, in more than 50 multifamily assets. Last year, Waterton and its architect partner captured Best Value-Add Renovation from MHN‘s Excellence Awards.