Bain Capital Real Estate and Magnolia Capital have partnered to invest $900m (€749m) in US value-add multifamily real estate.

The duo have teamed up to buy, renovate and operate multifamily housing in primary and secondary markets throughout the US, with an initial focus on Sunbelt markets.

The venture will target well located, garden-style properties constructed between 1975-2000 with a rent profile that serves a middle-income demographic, the companies said in a joint statement.

Kavindi Wickremage, MD at Bain Capital Real Estate, said: “We believe this is a compelling opportunity to invest in markets where employment is expanding and at a time when multifamily housing in established neighbourhoods continues to present attractive underlying fundamentals.

“Our partnership with Magnolia Capital is rooted in our thesis that there is a long-term need for middle-income housing, particularly in growing US markets where housing affordability continues to worsen.”

Maxwell Peek, founder, CEO and managing principal at Magnolia Capital, said: “We are excited to join forces as we launch this well-capitalised and differentiated partnership. Magnolia Capital has built an institutional, data-driven investment platform with extensive multifamily expertise.

”We are appreciative of the opportunity to partner with Bain Capital Real Estate, and together look forward to executing on our investment strategy to acquire and operate institutional-quality multifamily housing in demand-driven growth markets throughout the US.”

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