Dallas-Based PE Firm Closes Fund, Plans On Buying $2B In Multifamily Assets
Real estate private equity firm The Milestone Group plans to invest more than $2B in multifamily assets after raising $750M.
The Milestone Group, which has corporate offices in Dallas and Boca Raton, closed its Milestone Real Estate Investors V LP fund with a total raise of $750M, all of which will be invested in apartments across the U.S.
This is the firm's 18th investment vehicle and its fifth discretionary fund with a goal of investing into multifamily properties, the group said in a statement. The funds will target value-add opportunities in the Class-A and B multifamily space, with a specific focus on Sun Belt and mid-Atlantic markets.
Those markets have already been flooded with investors attracted to their rapid growth. The belief that the Biden administration may end 1031 exchange tax benefits has spurred further investment in Sun Belt and Southeastern markets as investors look to close 1031 deals before the program ends. These states are picked on the premise that they offer the best chance for returns.
Investors in Fund V come from across the globe, including foreign institutional investors, pension funds, insurance companies and other financial firms, according to the firm.
Purchases already made by Fund V include The Villages at Decoverly in Rockville, Maryland; Springs at Alta Mesa in Mesa, Arizona; and the Pavilions at Arrowhead in Glendale, Arizona.