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DALLAS-Local investment group, Sarofim Realty Advisors, has packaged a closed-end, $280-million fund of equity and debt to develop urban infill and suburban multifamily properties all across the US. Equity backing is coming from endowment and corporate pension funds.

Lynn Kehoe, Sarofim’s senior vice president, tells GlobeSt.com that the US-financed fund has a five-year shelf life with two one-year options. She estimates that the Sarofim Multifamily Fund LP will be spent within three years, allowing a two-year window for projects to mature and stabilize before they’re sold. She says talks have begun with several developers for class A projects in high-growth areas.

The fund is Sarofim’s fourth in 23 years and first one dedicated to the multifamily sector. “When we started looking at multifamily investment, we were looking at acquisition, but the arbitrage to do development was profound,” Kehoe explains, “so it made much more sense to do develop rather than acquisition.”

Kehoe says there are “several projects in the process of due diligence.” The first development is expected to start construction in early fourth quarter, she says.

Kehoe and the rest of the Sarofim team aren’t identifying any cities on the development roster. “It’s wherever the opportunities are across the US,” she says.

The investment group has put senior vice president Michael Doramus in charge of the fund. According to a company press release, his “broad reach in the multifamily market has enabled him to create a significant pipeline of potential projects.” Doramus wasn’t available for an interview.

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