Thompson Thrift Closes 4th Fund at $253M

Ten communities will be developed across the U.S. through this vehicle.

Photo by Kostiantyn Li on Unsplash

Thompson Thrift has continued raising funds to develop luxury communities in suburban markets across the U.S., this time closing its fourth multifamily fund.

The company initially sought $165 million in capital commitments for its Watermark Multifamily Development Fund IV L.P. but was able to close the fund at $253 million. The fund will be used to develop 10 luxury rental communities in geographically diverse suburban growth markets across the U.S., according to Thompson Thrift. So far, the fund has identified development sites in Ocala and Dayton Beach, Fla., Fountain and Greeley, Colo., Woodbury, Minn., and Wilmington, N.C.

According to the company’s offering memo, the six sites are currently under contract, with the Ocala site expected to close first in February and the Greeley location to close the latest so far in October. The memo also noted that the Ocala community will be 320 units, while the Daytona Beach community will offer 300 units. The Woodbury community will be built with the lowest number of units so far at 90 units, while both the Fountain and Greeley projects in Colorado will be 336 units each. The Wilmington project is expected to also have 300 units.

Carrie Thrift LaFay, vice president of capital markets for Thompson Thrift, said in prepared remarks that the fund was fully subscribed in a short time and received strong interest from investors. She added that high demand for multifamily housing in suburban growth markets would continue to grow.


Since being created in 2008, Thompson Thrift’s multifamily unit has consistently focused on developments in areas with rapid job growth, increased rental demand and barriers to new supply. Now, the company has constructed more than 55 communities in affluent suburban locations in the Midwest, Southeast and Southwest.

More specifically, Thompson Thrift’s affiliate, Watermark Residential, acquired 17.5 acres of land in Port St. Lucie, Fla., in June 2021 to build a 214-unit community. In October 2020, the company also acquired 21 acres in Colorado Springs, Colo., that will be used for a 360-unit community.

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