Winn Joins with Roseview on $200M Apt. Fund

BOSTON-Locally based WinnResidential and the Roseview Group have joined forces on a $200-million investment fund, the two companies said Wednesday. Known as Roseview WinnResidential I, the fund was established to acquire and reposition multifamily properties across the country, targeting class B and C assets of at least 150 units.

Overseeing acquisitions on behalf of the fund will be Nigel Keenan, a Roseview partner who has more than 20 years' experience acquiring apartments and commercial properties on behalf of major domestic and international pension funds, including CalPERS. Both Roseview and Winn will participate in the acquisitions process by sourcing and underwriting properties that are underperforming their peer group, according to a release.

Once the properties are sourced and acquired, the fund will then seek to provide fresh capital for strategic improvements. According to the release, the idea is that successfully executing a rehabilitation program will competitively reposition the assets, adding value without taking them out of service.

The fund will also actively consider investing in assets with energy-efficient improvement opportunities that will be accretive to property value. WinnResidential, the property management arm of WinnCos., will act as property manager and operator for each asset in the fund's portfolio.

In the release, Vince Costantini, managing partner and CEO of Roseview, says the venture “builds on a 20-year relationship between the principals of our two firms and our institutional partner,” a major pension fund. “The strong demand for multifamily housing will grow as the economy continues to recover and fuels new job growth. We believe there is a very strong risk-adjusted opportunity in 2013, and beyond, to improve existing properties to meet the current and growing demand for apartments while delivering consistent returns during rehabilitation.”

The partnership intends to leverage Winn's experience in property management as well as raising equity, along with Roseview's investment track record. As reported in the Boston Business Journal, other local players have established similar funds in recent months, whether to invest in the Boston area specifically or more generally.

This past January, Charles River Realty Investors closed its Fund II at $250 million to invest in Greater Boston's CRE market on behalf of institutional clients. Based in Newton, MA, Charles River raised over $170 million in its first fund and invested in $1.1 billion of real estate locally, the Business Journal reported. Last fall, Boston-based Davis Cos. raised $414 million in private equity from institutional and high net worth investors, targeting distressed properties and debt. The fund has the potential to invest in $1.2 billion of commercial real estate, according to the Business Journal.