Clear Investment Group has closed $30 million in capital commitments for its Clear Opportunity Fund II and completed its first acquisition: a 649-unit multifamily portfolio in Tuscaloosa, Alabama, the Chicago-based REIT said in a Dec. 18 press release shared with Multifamily Dive.
In the spring, Clear announced that it aims to raise $300 million through its second flagship value-add multifamily fund, COFII, to acquire workforce properties nationwide. It is targeting roughly 9,000 apartments.
The new Tuscaloosa portfolio comprises three garden-style communities, purchased at approximately $55,500 per unit. It was sourced off-market from a group of passive investors who assumed asset management after their operating partner was removed, per the release.
Clear Investment Group CEO Amy Rubenstein said that the purchase perfectly aligns with the COFII fund’s strategy of “targeting fundamentally strong markets where operational execution and disciplined capital investment can unlock substantial value.” It also represents a strategic entry into a growing Southeastern market underpinned by strong employment fundamentals and consistent housing demand.
“Tuscaloosa offers a compelling combination of stable employment drivers, population growth, and affordable housing fundamentals that position this portfolio for long-term success,” Rubenstein said in the release. The first closing of COFII “reflects the confidence our investors have, including new institutional partners, in our platform and our ability to identify opportunities that others overlook.”
Clear’s business plan includes injecting fresh capital for improvements, operational optimization, including establishing a strong team on the ground and strategic lease-up initiatives to elevate occupancy, normalizing operating income and increasing net operating income over a projected 36-month hold period.
Previously, Rubenstein told Multifamily Dive that the fund is buying 500-unit-plus multifamily portfolios in secondary and tertiary markets throughout the U.S., with a focus on submarkets with household income ranges from $35,000 to $75,000.
“We see tremendous opportunity to restore and unlock value through careful repositioning and hands-on asset management,” Rubenstein said in the release. “By recapitalizing underperforming assets and leveraging our operational expertise, we can transform distressed portfolios into stable, income-producing communities that benefit both our investors and local residents.”
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