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Brookfield, Fairfield Close Third Value-Add Multifamily Fund At $1B

Billions of dollars continue to flow into the value-add multifamily investment market.

Brookfield Asset Management and Fairfield Residential announced on Wednesday the close of a third value-add multifamily investment fund after raising $1B. Brookfield Property Partners, the spinoff that owns Brookfield Asset Management's commercial assets, and Fairfield contributed a combined $330M of their own capital to the fund.

Ric Clark founded WatermanClark in late 2020 and has invested in LEX.

The remainder of the $1B came from a combination of pension funds, institutional investors, banks, investment advisers, endowments and private individuals. The fund already has deployed $470M of its capital into 16 investments in coastal markets, according to the announcement.

For the remaining $530M, the duo plans to seek out multifamily properties across the U.S. to acquire and renovate. The money could also be deployed to fund ground-up developments in select coastal markets, the release said.

Though Brookfield has spent tons of capital and energy building office developments at the top of New York's market, it is unable to resist the siren song of value-add multifamily, which has seen tens of billions of dollars of investment from private funds in the past 18 months alone.

Fairfield Residential has not just invested in property in recent months; it also partnered with online roommate matching service HomeShare to improve the experience of living with relative strangers.