Gray Capital Launches $100M Multifamily Fund

The investment fund will focus on acquiring $300 million of large, Midwest apartment communities over the next three years.

INDIANAPOLIS, IN – Multifamily investment firm Gray Capital has launched an anticipated $100 million equity fund to acquire large apartment communities located in the Midwest.

The Gray Fund seeks to purchase $300 million of multifamily complexes over the next three years, with a hold period of up to 10 years.

The investment fund will focus on acquiring assets within growing, stable markets in the Midwest, such as like Indianapolis, IN. The fund will target properties built after 1980 that offer value-add opportunities.

The investment fund is now open to accredited investors.

“The Gray Fund is an accumulation of nearly seven years of work in the multifamily industry building Gray Capital and 18 years as a real estate investor and entrepreneur,” says Spencer Gray, president, CEO and co-founder of Gray Capital. “Right now, we’re seeing a perfect storm of long-forecasted demographic shifts, living preferences changes, a race for yield amongst investors, and 40 year high inflation – this creates a very attractive environment for apartment investors for the near future.”

Gray Capital currently has an ownership stake in more than 2,800 apartment units in the Indianapolis area, where the firm is based. Overall, the company has acquired more than 800 multifamily units since 2020.

“Beyond the numbers, we love taking a hands-on, creative approach to all of our projects, and as our team has grown with in-house construction, design and asset management, we’ve been able to maintain even closer control of the execution of our vision,” states Alex Gray, SVP and co-founder of Gray Capital.

Specializing in value-add strategies that involve property renovations and improvements, Gray Capital additionally focuses on core-plus strategies, which involves buying and operating newer properties and implementing efficient technology to reduce expenses.