Hilltop Residential announced the final close of Hilltop Growth Fund VI, with $288 million in total commitments, marking the firm’s largest fundraise to date and giving it $1.5 billion to $2 billion in buying power, according to a press release.
The Houston-based vertically integrated multifamily investment manager is focused on acquiring high-quality assets in growth markets where it can create value through operational improvements, capital enhancements and disciplined asset management, Greg Finch, managing partner of Hilltop Residential, said in the release.
Hilltop Residential, which manages a $3 billion portfolio with approximately 13,000 units, has acquired nine assets to date with Fund VI. It expects to reach full deployment within the next two years.
“Today’s capital markets dislocation is creating an attractive entry point for well-capitalized operators, enabling us to acquire high-quality communities at compelling bases,” Finch said in a statement.
Hilltop believes that by targeting markets with robust population growth, diversifying employment bases and favorable business climates, it can capitalize on the structural tailwinds driving multifamily demand.
Fund VI’s investors include endowments and foundations, financial institutions, insurance companies, national RIA platforms 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,” David Wylie, managing partner of Hilltop Residential, said in the release.
Value-add funds
The value-add fund space has gotten crowded over the last year, as a number of firms across the industry have raised investment vehicles targeting properties in need of upgrades, whether structural or operational.
This month, Carmel Partners announced the final close of its Fund 9 at $1.35 billion. The San Francisco-based real estate investment firm has acquired nine assets with the value-add vehicle.
“We believe that the opportunity to buy operating assets in the Coastal Gateway markets is the best that we have seen in Carmel’s 30-year history,” Ron Zeff, founder and CEO of Carmel Partners, previously told Multifamily Dive.
In January, American Landmark Apartments completed the first close of American Landmark Fund V, raising approximately $400 million in equity commitments, with a target of approximately $1 billion in total commitments.
The vehicle, American Landmark’s fifth closed-end value-add real estate fund, will focus on the acquisition, renovation and management of multifamily properties across the U.S. Sun Belt.
“Through both the value-added strategy and fine-tuning of operations, we can grow NOI and provide appropriate returns to investors,” Joe Lubeck, CEO of American Landmark, previously told Multifamily Dive.
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