Hilltop Residential has raised $288 million through Growth Fund VI, where it plans to capitalize on the multifamily demand. Overall, the Houston-based firm anticipates purchasing a gross asset value that ranges between $1.5 billion and $2 billion.
Commitments came from a range of investor sectors, including insurance companies, national RIA platforms, family offices, financial institutions and endowments and foundations.
So far, Fund VI has acquired nine assets, with the investment total to date not revealed. Moreover, Hilltop said it has pinpointed more pipeline opportunities and expects to fully deploy the fund within the next couple of years.
Currently, Hilltop operates multifamily assets in 15 Southeast markets in the country. It manages 13,000 total units and a $3 billion portfolio.
The strategy for Hilltop on the acquisition front remains targeting growth markets where it can deploy capital improvements and maximize value on high-quality properties, according to Greg Finch, managing partner of the firm.
"Today's capital markets dislocation is creating an attractive entry point for well-capitalized operators, enabling us to acquire high-quality communities at compelling bases," he said.
"By targeting markets characterized by robust population growth, diversifying employment bases, and favorable business climates, Hilltop aims to capitalize on the structural tailwinds driving multifamily demand across the region."
The latest move for Hilltop marks the biggest fundraising on record for the company.
For the multifamily sector, March marked another tough month for rents, as new supply continues to put pressure on the sector. The average median for apartments was $1,669 across the 50 largest U.S. metros, down 1.5 percent year-over-year, according to a report from Realtor. Specifically, two-bedroom apartments are struggling the most, with rents declining by 1.7 percent to $1,859.
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