Value-Add Properties Attracting More Notice
There is a robust demand for many apartment properties in fast-growing secondary cities.
INDIANAPOLIS—The intense demand for apartments keeps bringing more investors into the multifamily market, and many are looking beyond new luxury properties in gateway cities. Officials from Buckingham Cos. an Indianapolis-based real estate company, say that their affiliate, Buckingham Partners, LLC, closed its first real estate fund, the Buckingham Multifamily Fund I, at $175 million. It will pursue a value-added strategy and focus on acquiring multifamily and mixed-use properties located in fast growing secondary markets throughout the Midwest and Southeast US.
“We are delighted our debut fund has attracted the support of best-in-class investors who believe in our investment strategy, and who appreciate the track record and operational excellence of our team,” says Bradley B. Chambers, founder, president and chief executive officer of Buckingham. “As interest in living and working in vibrant Midwestern and Southeastern markets increases, we are seeing great opportunities in well-located multifamily housing.”
The fund closed in 12 months and was oversubscribed for its target, he adds. Investors included large North American public and private institutions.
Buckingham Partners, LLC, the fund manager, and Buckingham Multifamily Fund I GP, LLC, the fund general partner, will focus on increasing asset value through management efficiencies, property upgrades, interior/exterior renovations, and improved amenities.
The fund has closed, or is under contract to acquire, six investments in Carmel, IN; Zionville, IN; Cincinnati, OH; Louisville, KY; and Nashville, TN.
Evercore served as global placement agent for the fund. Goodwin Procter served as legal counsel to Buckingham.