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. 

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. 

Acquisition volumes among net lease REITs decreased modestly in the third quarter of 2024, as costs of capital remain volatile for most of the REITs, Green Street said in its latest report on the sector. Transaction volume was down 45% from Q3 2023 and down 50% from the same period two years ago.  

Although the net lease sector’s gross asset value premium averaged 13% in Q3, compared to 6% in the previous quarter, Green Street noted that this was skewed higher by outsized GAV premiums among two of the seven publicly traded REITs in the data and analytics firm’s coverage universe. “As such, most REITs are abiding by their weaker-than-normal cost of equity signal and acquiring less,” according to Green Street.  

Looking ahead, Green Street reported that most net lease REITs anticipate “a significant uptick in transaction volumes” in Q4 of this year and heading into 2025. 

Pictured: A Cooper’s Hawk Winery & Restaurant property in the Essential Properties Realty Trust portfolio.

Gantry arranged a $55.9-million purchase money permanent loan to acquire the Huntington Oaks retail center located at 500-600 W. Huntington Dr. in Monrovia. The acquisition encompasses 251,000 square feet of leasable space, with major tenants including a mix of national retailers, restaurants and services.

Principals George Mitsanas and Braden Turnbull and associate Austin Ridge with Gantry’s El Segundo production office represented the borrower, a private real estate investor. The five-year, fixed-rate loan was secured through one of Gantry’s correspondent insurance lenders, underwritten to full-term interest-only.

Mitsanas said, “There are many experienced sponsors and investors with significant equity on hand to transact in this phase of the cycle, and we expect to see the pace of investment sales increase into 2025. Retail has remained a strong performer post-COVID. That has not gone unnoticed by our extensive roster of lenders, who continue to prioritize allocations to power center, grocery-anchored and neighborhood retail assets in both urban and suburban markets.”

Faropoint, a Hoboken, NJ-based real estate investment firm focused on last-mile industrial properties, has secured a $150 million acquisition line with a leading U.S. financial institution for its Industrial Sale-Leaseback (ISLB) Fund. This marks the second loan facility provided to Faropoint by this institution, following a previous $130-million facility for Fund II.

The ISLB Fund was launched earlier this year with a $300-million target. It aims to capitalize on the debt gap created as local and regional U.S. banks reduce commercial real estate exposure.

“This $150-million acquisition line from our financial partner is a testament to the strength of our ISLB strategy and our ability to identify and execute on attractive opportunities in the last-mile industrial sector,” said CFO Idan Tzur. “We’re pleased to expand our relationship with a trusted institution, whose expertise and financial strength align perfectly with our growth objectives and empower us to navigate today’s challenging credit environment with confidence.”

Hawkins Way Capital, a fully vertically integrated real estate company with $3 billion of assets under management, acquired Garden Village, a 77-unit student housing property in Berkeley. Located at 2201 Dwight Way, the latest addition to Hawkins Way’s rapidly growing portfolio is the second FOUND Study property in Berkeley, following the acquisition of Varsity Berkeley in September.

Garden Village is now operating as FOUND Study Southside Berkeley. Both FOUND Study properties are managed by FCL Management, an operator of high-performing assets in select metros across the U.S.

“This acquisition reflects our ongoing commitment to investing in high-quality housing that meets the evolving needs of today’s students and young professionals,” said Ross Walker, managing partner, Hawkins Way. “Boasting modern design, superior amenities, and a prime location, just blocks from UC Berkeley, the latest addition to the FOUND Study brand is another step forward. We are eager to welcome students and create an environment that feels like home.”

MDH Partners (MDH) announces the close of a $130 million financing from Capital One. The Frontier Loan supports more than 1.8 million square feet of MDH’s recent acquisitions and development across coastal Georgia and three other US towns. The acquisition includes the 655,500-square-foot Beltway Logistics Center just outside Savannah, in Bloomingdale, the first acquisition from the fund.  MDH purchased the vacant warehouse from a joint venture led by the TPA Group. Joe DeHaven led the acquisition process for MDH Partners. Capital One’s Mary Lucy Lester originated the loan for the firm.

Beltway Logistics Center is situated on Jimmy DeLoach Parkway, the main thoroughfare to the Port of Savannah, and less than 1 mile from the I-16 interchange. The Port of Savannah is the fastest-growing and fourth-largest port in the nation, serving 20% of the U.S. population.

According to JLL, Savannah maintains one of the lowest industrial vacancy rates in the U.S and has remained below 5% for nine quarters in a row.

San Diego-based real estate private equity firm Pacifica Companies, LLC completed its acquisition of a 15-community senior living portfolio from Retirement Housing Foundation for $180,500,000. The acquisition was made in stages, with various segments closing in phases throughout late 2022, 2023, and first quarter 2024.

Investment bank Ziegler served as sell-side advisor to RHF on the sale. Located across six states, including seven properties in California, the portfolio consisted of 3,200 market-rate independent living, 850 assisted living, memory care and 563 skilled nursing beds.

The portfolio represented the majority of RHF’s presence in market-rate senior housing and post-acute care. Stuart Hartman, president and CEO of Long Beach-based RHF, said, “The sale of the communities was bittersweet. As a longtime operator of housing and healthcare communities, we will miss being of service to the residents in the communities we sold. At the same time, we are excited to focus on our affordable housing development, acquisitions and operations, catering to limited income seniors, person with disabilities and families.”

Pictured: Pioneer House, Sacramento.

Be there in person for the 8th Annual Connect Los Angeles 2024, May 1 at the Intercontinental Los Angeles Downtown. Industry leading experts will share insights and forecasts on today’s CRE markets. 

Hines U.S. Property Partners (“HUSPP” or the “Fund”), the firm’s U.S. core-plus fund, has acquired Blu South, a build-to-rent (BTR) community located at 920 Blu Central Rd. in Pineville, North Carolina. Serving as Hines’ first BTR acquisition in the U.S., this announcement represents the firm’s confidence in the growing sector and the Charlotte market. The seller is Landmark Properties.

Hines’s Adriana de Alcantara added, “This strategic acquisition expands our alternatives portfolio, capitalizing on a Class A BTR community that supports long-term demographic tailwinds as people look for more space amid a challenging home-buying market.”

Upon completion, Blu South will feature a total of 551 individually platted homes ranging from three- and four-bedroom townhomes, single-family detached houses, and duplexes across 75-plus acres. Of the planned 551 homes, 341 have already been delivered, with the remainder expected to be fully delivered by the third quarter of 2025. 

Industry leaders and power players are connecting at Connect Phoenix Multifamily & Single-Family Build-to-Rent on April 18 at the Westin Kierland Resort & Spa. Don’t miss the expert’s take on where the market is headed, and what changes are on the horizon. Register Now!

Several shopping centers in the Midwest were part of New York-based KPR Centers’ acquisition of an eight-property retail portfolio for $180 million.  

KPR Centers expanded its presence in the Midwest region through the transaction, which the properties located in Milwaukee and St. Louis as well as Florida. The portfolio is 96 percent leased and totals over 1.5 million square feet, with shopping centers anchored by tenants like Dick’s Sporting Goods and The Fresh Market.

The Midwest properties include the 220,083-square-foot Nagawaukee Center in Delafield and the West Allis Towne Center, a four-building site spanning 326,223 square feet. Additional retail centers in the portfolio are the 208,112-square-foot Deer Creek Shopping Center in St. Louis and Central Plaza, a 163,625-square-foot retail center in Ballwin.

New York City-based pharmaceutical giant Pfizer Inc. has stopped its $350 million manufacturing plant project in Everett, marking a pivot in the company’s strategic expansion after its $43 billion acquisition of Bothell-based Seagen.

The Everett facility, located at 215 Shuksan Way, was originally part of Pfizer’s plan to bolster its manufacturing capabilities, reported the Puget Sound Business Journal. Seagen, a global biotechnology company focused on cancer treatments, signed a lease on the 269,097-square-foot facility in 2021, and Pfizer had announced plans to build a medical production facility from the ground up at the site.

The operations and therapeutic products initially slated for production in Everett are now moving to a plant in Sanford, North Carolina. Now, the closure of the proposed project will result in approximately 120 layoffs. “This decision is not a reflection on the performance of our colleagues but is in alignment with our site capacity design to meet the needs of the business,” Pfizer said in a statement.