Miami-based Neology Group announced the final close of its inaugural $175 million capital raise, giving it nearly $1 billion in transactional power and enabling the firm to pursue larger-scale projects across Florida and the Southeast, according to a July 28 press release shared with Multifamily Dive.
Founder and CEO Lissette Calderon, who built her first project at age 28 and has since become a development fixture in her hometown of Miami, told Multifamily Dive that the raise is a “validation of both our track record and our strategy for Neology's next phase of growth. It really is a continuation of the past 20 years of the work that we've been doing.”
She added that the raise gives Neology “greater flexibility” in its pursuits and allows the firm to “act decisively and more efficiently when we identify compelling investments.”
The raise marks the beginning of a broader capital strategy for Neology as the firm prepares to undertake some of its largest-ever development projects, according to Calderon.
“For all our projects over the last 20, almost 25, years in business, we've always had to raise capital. This is the first time we're really looking at it from a strategic standpoint,” Calderon said. “We intend to preserve the entrepreneurial approach that has always allowed us to identify opportunities early and execute creatively. But it allows us also to continue to bring the institutional discipline in how we underwrite, capitalize and develop these projects.”
Although multifamily is still “going to be at the heart of what we continue to do,” per Calderon, the firm is increasingly pursuing district-scale projects where housing fuels commerce, culture and hospitality.
For example, Neology recently partnered with the Rubell family and Lion Development Group on a three-phase development in Miami’s Rubell Arts District, per the release. The project will include a 21-story tower with 330 luxury apartments and 10,000 square feet of ground-floor retail space to anchor the Rubell Museum.
In the next year and a half, Neology expects to deploy capital into more multifamily projects, district-scale mixed-use developments and strategic partnerships.
“We'll continue to follow demand drivers, particularly in Florida, and selectively across the Southeast, where the parameters meet our investment criteria,” Calderon said.
As for what types of opportunities she’s eyeing, “you can't speak about it with a broad brush stroke,” according to Calderon.
“It's really market-by-market, and you could probably go even further than that, it's neighborhood-by-neighborhood,” Calderon said. “You really have to go in almost with a scalpel and … focus on what you're going to bring in terms of value to that specific area.”
Right now, it’s an exciting time for South Florida, according to Calderon.
“We've seen the big names move here, and there's great stories that come with it and great enthusiasm, but of course we need to make sure that the people that call Miami home, that work in Miami, also [have] a place,” Calderon said. “A Miami for everybody, that's really important, and that's something that we work tirelessly on.”
Neology has already started preparing for its next capital raise to drive future growth, according to the release. With additional capital vehicles in the works, it is looking to team up with like-minded investors, brokers, land owners, municipalities and developers.
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