Gray Capital announced a new investment vehicle last week — Midwest Multifamily Fund — to target $500 million in value-add and core-plus multifamily assets in the Midwest markets of Indianapolis and Columbus, Ohio.

"We believe the multifamily sector is entering a highly opportunistic window, driven by increasing rental demand, tightening supply and emerging distress signals," said Spencer Gray, president and CEO of Gray Capital. 

The Indianapolis-based multifamily firm's opportunistic investment vehicle is designed for institutional investors, family offices and high-net-worth individuals, according to a news release. The firm, which has executed over $2 billion in commercial real estate transactions, will utilize its property management platform, Gray Residential, for properties in the fund.

"This fund is strategically positioned to acquire high-quality assets at attractive valuations,” Gray said.

Gray is among a group of firms of various sizes fundraising to buy value-add and distressed apartments. 

In May, Mesirow Institutional Real Estate Direct announced the final closing of the Mesirow Financial Real Estate Value Fund V after securing $1.245 billion in investor commitments.

Fund V will target value-add multifamily assets across the top 25 to 30 U.S. markets, focusing on building asset appreciation through revenue enhancement, cost optimization and property management. 

In February, Fairfield held its final close for its U.S. Multifamily Value Add Fund IV LP with $1.47 billion of equity commitments, including $350 million of co-investment equity, exceeding its $1 billion target. 

The San Diego-based owner, developer and operator will focus on acquiring value-add multifamily assets in more than 30 major metros nationwide with the vehicle, which is its largest to date. As of February, it had deployed approximately $385 million of equity in 16 assets.

Click here to sign up to receive multifamily and apartment news like this article in your inbox every weekday.