Carmel Partners has closed its fourth real estate fund, Carmel Partners Investment Fund IV, with total commitments of $820 million, the firm announced. The firm said in a press release that it had exceeded its original target of $700 million. The firm is based in San Francisco.
San Francisco, October 1, 2012 – Carmel Partners (“Carmel”) today announced the close of its fourth discretionary institutional real estate investment fund, Carmel Partners Investment Fund IV (“Fund IV”), with total commitments of $820 million. With a target raise of $700 million, Carmel’s Fund IV reached its “hard cap” of $820 million and held its final close.
Through Fund IV, Carmel will continue to execute its proven strategy of value-add investing in multifamily properties in the country’s supply-constrained markets with high barriers to entry. Consistent with prior funds, Carmel also invests in new development and high-yielding multi-family debt opportunities with compelling risk-adjusted returns. Since initiating investment activity in March 2012, Fund IV has committed approximately $250 million (30%) of equity.
Including Fund IV, Carmel has raised approximately $2.5 billion of institutional equity and includes many of the nation’s top endowments, foundations, family offices, and select pension funds among its investors. From inception, the firm’s investments consist of 121 assets with 26,275 apartment units.
“We continue to find compelling risk-adjusted opportunities, and we are uniquely well positioned to take advantage of them,” said Ron Zeff, the firm’s founder and Chief Executive Officer. “With 26 return investors and 17 new investors, we have a top tier investor base that has shown us a lot of support.”
“Carmel is pleased to be oversubscribed in a challenging capital raising environment. Investment officers have a broad set of choices among asset classes and real estate managers, and we are excited our strategy and results in the multifamily sector continue to resonate,” Quinn Barton, Managing Partner, Capital Markets at Carmel, added.
In September 2007, Carmel closed its third institutional real estate investment fund, Carmel Partners Investment Fund III (“Fund III”), with $700 million of equity commitments. Fund III concluded its investment activity in April 2012 with 36 transactions. The Fund is comprised of multifamily acquisition/rehab, new development, and debt investments and recently reported a net IRR of 16.7% to investors as of June 30, 2012.
Carmel Partners Investment Fund II (“Fund II”) closed in April 2005 with $400 million of equity. Fund II recently reported a net IRR to investors of 7.8%, as of June 30, 2012. Finally, Carmel Partners Investment Fund (“Fund I”) closed in November 2003 with $215 million of equity. As of June 30, 2012, Fund I reported a net IRR to investors of 19.7%.
About Carmel Partners
Based in San Francisco, Carmel is a premier, full-service real estate investment firm specializing in multifamily transactions within the United States. Founded in 1992 by Ron Zeff, Carmel also has offices in New York; Irvine; Denver; Seattle; Washington, D.C.; and Honolulu. Carmel employs 589 professionals.
Carmel is currently pursuing direct value-add apartment properties, ground-up development, debt investments, and joint venture deals in its core markets of Northern and Southern California, New York, Seattle, Denver, Washington, D.C. and Hawaii.