Carmel Partners raised close to $1.4B for its latest multifamily value creation fund.
The California-based multifamily developer and investor raised that sum for its newly closed Carmel Partners Investment Fund 9 and has already acquired nine operating assets for it.
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Domestic and international pension funds, foundations, family offices, endowments and high net worth managers are among the fund’s committed investors, according to a press release from the company. The latest investments bring Carmel Partners’ fund series total to more than $8.5B since it began in 2003.
Carmel Partners founder and CEO Ron Zeff said the firm was grateful for its investors’ support and trust in the company’s investments.
“Fund 9 has a well seeded portfolio with $477 million in committed equity and is deploying into what we believe is the most attractive multifamily opportunity set that the Firm has seen in almost 30 years of investing,” Zeff said in a statement.
The firm targets multifamily investments in supply-constrained, high-barrier-to-entry markets like Boston, Denver, Hawaii, New York, Northern and Southern California, Seattle and Washington.
Carmel Partners plans to use proprietary rent growth forecasts from the its five-person data science and research team. The company can invest in assets already in operation, development projects and debt.
Since its founding 30 years ago, Carmel Partners has developed or acquired and upgraded more than 57,000 multifamily units valued at a combined $23.7B.
It has also made 22 debt investments during that time.
One of the firm’s highest-profile recent acquisitions was the former Washington Marriott Wardman Park Hotel in Washington, D.C. Carmel Partners bought that property in 2021 and converted it into a nearly 900-unit apartment complex in the city's Woodley Park neighborhood.
The company also acquired a stake in the 46-story The Sudbury apartment tower in Boston in 2024. Carmel Partners bought the portion of the 368-unit building from HYM Investment Group and National Real Estate Advisors for $43M, according to public records.
Carmel Partners’ fund could compete with Los Angeles-based Ares Management Corp., which raised $5.4B to deploy in value-add real estate in the U.S. and Europe. The global alternative investment manager said it is seeking investment opportunities in sectors such as multifamily, logistics and self-storage.
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