SAN FRANCISCO—Carmel Partners has held a finalclose of its fifth US multifamily value creationfund, Carmel Partners Investment Fund V. TheFund closed in less than nine months from launch in October2013.

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The fund was oversubscribed on its $1.025 billion hardcap. With the closing of Fund V, Carmel Partners hassuccessfully raised $3.16 billion since inception of the fundseries in 2003 of which more than half, or $1.845 billion, has beenraised post-global financial crisis through Funds IV and V,according to the firm.

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More than two-thirds of Carmel's investors participate inmultiple funds. The capital raised for Fund V represents morethan 50 equity commitments from a mix of existing andstrategically-targeted new investors.

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Ron Zeff, founder and CEO of Carmel, notes that“Consistent with our prior funds, Fund V will seek the bestrisk-adjusted opportunities across multifamily renovation,development and debt investments in relatively supply-constrained,high barrier-to-entry markets in the US. In the current marketcycle, we are continuing to seemore development opportunities where we believe ourvertical integration enables us to mitigate the risks in executionand construction. Therefore, similar to Fund IV, we expect Fund Vto have a high percentage of investments in ground-updevelopment.”

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The firm did not have anything additional to add regarding theFund's closing by deadline. According to a recent GlobeSt.com article, one major placethat San Francisco-based Carmel Partners is looking is New YorkCity. Recently, the firm was said to be the buyer of a $170-milliondevelopment site at 112-118 Fulton St., in Lower Manhattan. Thatsite would be the second development site in Manhattan for Carmel,headed by Zeff, which owns and develops property nationally. Carmelis part of a joint venture that is building a residential tower at325 Lexington Ave., between 38th and 39th streets in Midtown. InJanuary, Carmel purchased the 151-unit rental tower 15 CliffSt., in Lower Manhattan, for $95 million, and in 2012 itgrabbed the 163-unit apartment building the Electra at 354 E. 91stSt., also for $95 million.

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In October of 2012, the firm closed its Carmel PartnersInvestment Fund IV. At the time, a firm spokespersontold GlobeSt.com that Carmel had recently invested in cashflow-challenged assets that are not easily financeable, thatrequire certainty of close and that may require structuringcreativity and solutions, including a large multifamilyacquisition/rehab transaction in Hawaii, a large ground-updevelopment in California and two debt deals. For that closing, thespokesperson also told GlobeSt.com that Carmel'sFund III was $700million, so the slightly larger $820-million fund size “iscommensurate to the firm's recent investment pace and strong dealpipeline.”

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Natalie Dolce

Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.