Carmel closes $700m fund

The San Francisco-based private equity real estate firm has closed its third property vehicle, almost twice the size of its previous fund, targeting the US multifamily sector.

Carmel Partners has closed its third multifamily fund, Carmel Partners Investment Fund III, on $700 million (€492 million). The fund will target value-add opportunities in the US multifamily market.

“We are pleased to close our third fund at a size that will allow us to continue executing on our core investment strategy as we also look to take advantage of our powerful in-house capabilities, market inefficiencies and prudent growth opportunities,” Ron Zeff, Carmel’s founder and chief executive officer, said in a statement. “With 26 return investors and 4 new investors, we believe the market has expressed its confidence in our strategy, which has endured numerous market cycles to consistently produce strong risk-adjusted returns.”

The latest fund brings Carmel’s total equity to $1.7 billion with a portfolio of 68 properties totaling 18,500 units.

The firm closed its second real estate investment fund in 2005 with $400 million in equity commitments. Like the firm’s debut fund, Carmel Partners Investment Fund II focuses on the acquisition, development and renovation of multifamily properties.

Last month, the firm acquired a six-property, $191-million multifamily portfolio through its second fund. The portfolio included Timberwood Apartments in Aurora, Colorado; Skyline Park Apartments in Kent, Washington; Villa Pacific Apartments in Westminster, California; One Belmar Place in Lakewood, Colorado; Tustin Park Apartments in Tustin, California; and Piedmont Apartments in Bellevue, Washington.

Founded in 1992 by Ron Zeff, Carmel targets multifamily investments in the US and is currently pursuing value-add apartment properties, ground-up developments and joint venture deals in Northern and Southern California, Seattle, Denver, Washington DC and Hawaii. The firm also has offices in Irvine, Denver, Seattle, Washington DC and Honolulu.