July 18, 2018
Boston Capital, the third largest owner of apartments in the U.S. with over $19.6 billion invested, is pleased to announce the final investor closing of Boston Capital Income and Value U.S. Apartment Fund (“BCIV”). BCIV, a discretionary multi-investor Luxembourg based fund vehicle, includes financial institutions, insurance companies, pensions, and family offices among its investors and will acquire over $350 million in apartment properties throughout the U.S.
“We are very pleased to close BCIV, the latest in a succession of institutional investment vehicles through Boston Capital’s conventional apartment investment arm, Boston Capital Real Estate Partners (“BCRE”),” said Jeff Goldstein, COO and Director of Real Estate at Boston Capital.
The Fund generates high current dividends and capital growth by acquiring and renovating Class B apartment properties located in major and secondary U.S. markets and by targeting a renovated rental price point well below new construction rates, which appeals to a middle and upper middle income renter profile.
BCIV closed in June its fourth acquisition in the Fund, La Costa Apartments in Dallas, and is in the process of renovating three previously acquired properties in Atlanta, Phoenix, and Charlotte. This brings the Fund’s current holdings to 1,330 apartment homes. The Fund intends to acquire two to three more properties through early 2019.
Mark Dunne, Managing Director of BCRE, adds, “We are excited to close BCIV as we continue to innovate the structures and strategies of our apartment investment offerings. With support from our institutional investment partners, BCIV locates and extracts untapped value from existing multifamily properties in infill suburban ring locations in primary and secondary metropolitan areas across the U.S. With four high performing assets already in the Fund, we plan to close out the investment phase within the next 9-12 months and begin marketing the next fund in this series by early next year.”
Citigroup Global Markets acted as placement agent for BCIV.
BCRE specializes in originating and executing market rate, opportunity-driven, real estate equity investments throughout the U.S. utilizing institutional, private investor and private REIT vehicles. BCRE has invested approximately $1.4 billion in market rate assets, expanding Boston Capital's extensive reach, product coverage and holdings in most major and secondary markets in the U.S.