Griffis Residential has announced the launch of its new Griffis Premium Apartment Fund VII, according to a Wednesday press release. The Denver-based owner and operator has been raising money since the beginning of the year.

So far, the firm has been successfully raising money, according to Jim DiRienzo, senior vice president of investments at Griffis. Still, the environment is more challenging than it was in the late 2010s.

“We’re making good progress and probably ahead of what we anticipated,” DiRienzo told Multifamily Dive. “But there is some uncertainty in the market. It’s a harder time to raise money.”

The launch of Griffis Residential's seventh closed-end fund follows the deployment of 95% of Fund VI's capital.

Fund VII will target underperforming class-A apartment communities in markets with strong demographic and economic fundamentals. Griffis, which owns and manages 31 communities spanning 13 markets nationwide, is eyeing $550 million in commitments for the vehicle.

The firm believes the time is right to add to its nearly 10,000-unit portfolio, citing “unprecedented discounts to replacement costs,” according to DiRienzo. “For us, we’ll feel that’s a good measure of value,” he said.

Griffis chairman and co-CEO Ian Griffis said values have declined 18% nationally, while construction costs have increased 40% in the past four years, per the press release.

“Homeownership remains out of reach for many, but apartment affordability is remarkably healthy,” he said in the release.

Additionally, Griffis sees the apartment market in recovery. “We’re seeing total vacancies and stabilized vacancies start to converge,” DiRienzo said. “We’re obviously starting to see signs of health in a lot of our markets. We’re obviously still in a housing shortage in the U.S.”

In conjunction with the launch of Fund VII, Griffis purchased Loftin Place, a 263-unit community in West Palm Beach, Florida. The property, acquired on March 10, will be rebranded as Griffis North Olive. 

In June 2025, the firm's core open-end fund, Griffis Residential Income Trust, bought a 223-unit multifamily property in West Palm Beach. The company likes the area for its infrastructure investment and the presence of employers such as the Cleveland Clinic. 

“In Palm Beach County, properties are still insurable,” DiRienzo said. “It’s on the East Coast of Florida, and there are higher elevations. It’s less storm surge risk than Tampa, and there’s less supply than in Orlando.”