IMT Closes Fifth Value-Add Fund Oversubscribed

IMT Capital has closed its fifth value-add multifamily fund, Fund V, with $820 million in equity commitments. The firm initially sought $800 million in commitments for the fund, but received strong interest from investors, which spanned the gamut of capital sources: university endowments, foundations, pension funds and high net worth individuals. “We were oversubscribed, and we chose to stay with that number because it was comfortable for the strategy and comfortable for our investment partners,” Michael H. Browne, IMT Capital’s co-founder and senior managing director, says about the fundraising process.

Value-add multifamily has become a highly popular investment class, driven by a combination of tremendous tenant demand as well as a rapid rise in leasing rates. Despite the frenzy for value-add opportunities, however, IMT is committed to a prudent investment strategy, and it is dedicated to remaining opportunistic. “Our investment partners have a long-term view of the managers that they select to execute their overall portfolio allocations,” Browne, tells GlobeSt.com. “We are not being asked by our partners to invest the fund today. The orientation is always opportunistic. We also have a 10-year fund life, so we don’t find ourselves in any rush. We want to make good investments at good prices where we feel that we can add value.”