Hilltop Residential, a Houston-based multifamily investment manager, closed its largest fundraise to date, raising $288M in commitments and planning to acquire up to $2B in assets.
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Hilltop Growth Fund VI will be used to acquire properties at “compelling bases” created by today’s capital markets dislocation, the company announced Tuesday.
“Our strategy remains consistent: Acquire high-quality assets in growth markets where we can create value through operational improvements, capital enhancements, and disciplined asset management,” Hilltop Residential Managing Partner Greg Finch said in a news release.
Hilltop expects the fund to acquire about $1.5B to $2B in gross asset value and to fully deploy the fund within two years. Hilltop has already acquired nine assets with the fund and identified additional opportunities, according to the press release.
Finch, former president and co-founder of Venterra Realty, launched Hilltop Residential in 2017 with his sights set on multifamily value-add opportunities in Texas and other Southern states. The investment and development firm now manages a $3B portfolio of 13,000 units, including 12 properties in the Houston area.
Hilltop has invested in 15 Sun Belt markets, including Atlanta, Nashville, Charlotte and Orlando, Florida. In January, the firm acquired a 292-unit community in the Houston Heights, the Houston Business Journal reported.
Hilltop also acquired a 308-unit community in St. Petersburg, Florida, in November, according to the Tampa Bay Business Journal.
The investor base for Hilltop Growth Fund VI includes endowments and foundations, financial institutions, insurance companies and family offices.
“Closing our largest fund to date in one of the most challenging capital formation environments we've seen reflects the trust our partners have in our platform and our ability to capitalize on today's multifamily opportunity set,” Hilltop Residential Managing Partner David Wylie said in the release.
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