Carmel Partners announced the final close of its Fund 9 at $1.35 billion, according to an April 7 press release shared with Multifamily Dive. 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, told Multifamily Dive in emailed comments.
The lack of core capital in the market is enabling the acquisition of “challenged” assets at prices that translate into value-add returns. “We believe that the return per unit of risk in these acquisitions is very compelling,” Zeff said.
Carmel, which has the ability to acquire or build everything from class A to workforce housing, expects to primarily acquire class A-minus and B-plus assets and return them to class A and A-minus condition through capital work and improved operations, according to Zeff.
The firm will primarily seek opportunities in supply-constrained markets and submarkets, including Denver, Dallas, Boston, New York, Washington, D.C., Northern California, Southern California and Honolulu.
Investors include U.S. and international pension funds, endowments, foundations, select family offices and high-net-worth managers.
“After a fairly challenging fundraising environment over the prior several years, starting in the second half of 2025, we observed it improving,” Zeff said. “We believe that improving liquidity in institutional portfolios, in addition to a shift in focus from real estate debt to real estate equity, were the primary contributors.”
Since the inception of its fund series in 2003, Carmel has successfully raised over $8.5 billion, per the release. The firm has the ability to invest in existing operating assets, development projects and opportunistically, debt.
Other firms have been launching value-add funds in what looks to be a strong buying environment.
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.
Earlier in January, Heitman announced the final close of Heitman Value Partners Fund VI, its largest closed-end fundraise to date. The vehicle received commitments totaling $2 billion, exceeding its $1.75 billion target and reaching its hard cap.
“We don’t have specific target weights, but living strategies, including traditional multifamily and student housing, have played a key role in HVP’s portfolio construction,” Mike Trench, executive vice president and co-portfolio manager of Heitman’s value series, previously told Multifamily Dive. “We don’t expect Fund VI to be materially different in that regard as we continue to appreciate the growth potential and capital demand of those living sectors.”
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