Lion Actual Property Group has closed on its second fund that might be used to amass communities throughout Solar Belt states. The agency closed its LREG Multifamily Fund II at greater than $200 million raised. The fund noticed its first closing in September 2021 however has since seen funds raised from a mixture of household workplaces, high-net-worth buyers and the agency’s capital. The agency instructed Multi-Housing Information that the fund comprised returning buyers.
The fund might be used to proceed LREG’s technique of Solar Belt acquisitions. Jeff Weller, co-founder & managing principal at LREG, stated in ready remarks that the agency has already allotted 60 p.c of the fund into appropriate belongings. Based on LREG, the properties concerned within the fund up to now are in Dallas and Nashville, Tenn., ranging in classic from the Nineteen Seventies to the Nineteen Eighties with going-in cap charges within the mid-to-high 4 p.c cap vary.
LREG additionally instructed MHN that it additionally has two value-add offers in Atlanta that might be a part of the fund. These two offers are at present in escrow and the agency plans to shut on them within the coming weeks, in response to LREG. Mory Barak, co-founder & managing principal at LREG, stated in ready remarks that the agency is seeing a 20 p.c low cost in goal belongings in some circumstances, because of the rising rates of interest and inflation that we’re at present seeing.
Dallas and past
Previous to LREG Multifamily Fund II, the agency launched its first fund known as the Marble Companions Fund I. This fund was extra targeted on capitalizing the final associate and elevating LP capital on a deal-by-deal foundation. In complete, the fund acquired greater than $500 million value of actual property throughout 15 properties that totaled 3,503 models.
General, LREG has acquired greater than $1.2 billion in belongings stemming from 107 properties throughout 10 states, totaling 11,044 models since its founding in 2007. The Dallas-based agency’s present portfolio totals 6,510 models and is concentrated within the Atlanta, Austin, Texas, Dallas, Denver and Nashville, Tenn., markets. Earlier this 12 months, LREG acquired a 172-unit group in Dallas with plans to renovate the inside and exterior.