ROCKVILLE, MD-Locally-basedÂ CAPREITÂ is poised to embark on a $500-million assetÂ commercial real estateÂ acquisition spree, principals of the firm tell GlobeSt.com. To be precise, the $500 million refers to the total property value in value-add multifamily acquisitions it plans to make over the next 18 months. To fund these transactions, it will be turning to both existing and new partners to raise $150 million of JV equity that will be leveraged between 65% to 70%, presidentÂ Dick KadishÂ says.
â€œWe typically donâ€™t raise funds ourselves,â€ he notes. â€œInstead, we utilize the vast array of funds out there that are raising money for multifamily.â€ CAPREIT has been a player in the multifamily space for more than 20 years. â€œBut weâ€™ve never seen such a good time to step up investments as we do now.â€
To that end, the firm has made its first hire in more than a decade, recruitingÂ Kevin Smith, the former director of Mortgage Banking at Centerline Capital Group, to join as senior vice president. He will be tasked with identifying the best sources of capital for this investment push. The firm has partnered withÂ Blackrock, Principal, ApolloÂ andÂ Praedium GroupÂ in the past and intends to maintain those relationships,Â Ernie Heymann, CAPREIT SVP and principle, tells GlobeSt.com.
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â€œButâ€”and this is one of the reasons Kevin joined us--over the past five years weâ€™ve seen such an explosion of funds formed to invest in apartments,â€ says Heymann. â€œPreviously there were maybe 15 to 20 private equity firms that focused on apartments and maybe a dozen or two insurance companies and pension funds that did the same. Today it seems like those numbers have grown tenfold.â€