Almanac Realty Investors has committed up to $350m (€323m) of capital to US residential real estate firm ECI Group to support its expansion plans.
The equity capital from Almanac will be used to fund acquisitions, developments and credit investments within the multifamily sector.
ECI’s investment strategy includes acquiring existing multifamily communities built since the 1990s and developing new ones in the Southeast and Texas. The company will invest both directly and through joint ventures.
ECI, which recently formed a partnership with Smith Hill Capital and InterVest to launch a US private real estate lending venture, said the combined impact of this venture and the capital injection from Almanac is expected to generate more than $3bn in investment and financing growth over the next three to five years.
The projected amount is based on the expected investment power and stabilised value of acquisitions and developments undertaken with future joint venture partners, leveraging available financing options.
Seth Greenberg, ECI’s CEO, said: “ECI is excited to take our long relationship with the team at Almanac to a new level, investing alongside them as we take our existing portfolio of 7,600 units in 28 properties throughout the Sunbelt and refine and grow that portfolio through both acquisitions and our in-house development team.
“We see the opportunity for a fully integrated, experienced company like ours to invest in markets with substantial shortages of market-rate apartments of all types.”
David Haltiner, managing director at Almanac, said: “ECI is a deep and sophisticated platform with significant operating and investment capabilities. Under the leadership of Seth Greenberg and team, the company has positioned itself to execute on a broad opportunity set within the multifamily space.
“We look forward to establishing this long-term partnership and supporting ECI’s growth initiatives.”
The equity transaction was managed by JLL‘s securities and capital markets businesses.
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