Updated: Mar 23
Tie Lasater discusses the success of real estate investment in multifamily housing.
KCAP RE FUND III was a resounding success with investors. We completed the $50 million capital raise for this fund in just over 6 months. Demand for this product was such that we had to redirect $10 million of committed capital to our new fund, KCAP RE FUND XI. With the acquisition of both M6 and Montgomery 5, the fund is already performing above expectations in a very short time frame.
Given the demand and interest we had for KCAP RE FUND III compounded with the rising uncertainty in the market, it is with great excitement that we launched KCAP RE FUND XI. This fund is a $100 million capital raise that will continue to focus on class B multi-family housing in the southeastern United States. The capital raise began on February 1 and has been extremely strong, much like the last fund.
KeyCity has targeted seven exceptional assets for this fund. This will commit the first $25 million of capital on roughly $91 million of assets. In addition, there is a very exciting asset in the pipeline that should continue to drive outstanding fund performance. We look forward to speaking with you about our newest fund offering.
The public markets continue to fluctuate with geopolitical turmoil and interest rate uncertainty. We will continue to offer a stable investment platform designed around safe, secure, cash-flowing physical assets. KeyCity has built our foundation on this asset class and will continue to be the catalyst for Connecting Capital to Wealth!
With the acquisition of both M6 and Montgomery 5, KCAP RE FUND XI is already performing above expectations in a very short time frame.