Bain Capital Real Estate and Magnolia Capital have formed a $900 million joint venture. The partnership plans to acquire multifamily properties in both primary and secondary markets throughout the US via a value-add strategy. They will execute this plan over the next several years.

While this joint venture has the capacity to invest nationally, it plans to focus in the sunbelt region, which has seen tremendous growth in recent years. More specifically, it is focusing on garden-style apartments with a middle-income demographic. Under the value-add strategy, target properties will likely be 1975 to 2000 construction that will support a improvements. Capital expenditures will include upgrades to unit interiors, building exteriors and amenity spaces as well as improving operations and property management house.

The sunbelt has become a hotspot for apartment activity. The region has attracted residents from more expensive markets on the two coasts, and capital has exuberantly followed. In fact, a recent interview with William Spransy, CFO of North Carolina-based Eller Capital, says that most capital is coming from the northeast and California, the same markets seeing an exodus of residents to sunbelt cities. This trend was already in place before the pandemic, but the coronavirus outbreak has fueled even more growth for the region.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.