US real estate investment firm Buckingham Companies has received around $270m (€252m) in capital commitments for two of its multifamily funds.
Buckingham said it has raised $215m at the close of the value-add Buckingham Multifamily Fund 2 (BMF2) fund and received initial commitments of about $55m for Buckingham Multifamily Development Funding Vehicle, a fund with a $160m target.
The manager said BMF2 achieved 100% reinvestment participation from previous fund investors in the predecessor BMF1 fund which closed in May 2018. BMF2, which was backed by investors including large US and non-US public and private institutional investors, will target multifamily markets in the Midwest and Southeast.
Buckingham said BMF2 has already allocated 45% of its commitments to multifamily communities in four cities.
The Funding Vehicle will target ground-up construction of amenitised, workforce multifamily properties in vibrant US secondary markets, Buckingham said, adding that it has partnered with LaSalle Global Partner Solutions on investing in the development of workforce housing.
BMF2 and the Funding Vehicle plan to collectively acquire or develop over $1bn in value of multifamily assets over the next three years, the manager said.
Bradley B Chambers, CEO of Buckingham Companies, said: “We are thrilled to have the continued support of current best in class limited partners, and we welcome our new LP partners in BMF2.
“Their support recognises the exceptional track record and operational excellence of the Buckingham team and is a validation of our investment strategies.
“Multifamily continues to provide compelling risk-adjusted returns. We see ongoing opportunities ahead for well-located multifamily housing for these new vehicles.”
Andy Buchanan, senior VP of LaSalle Global Partner Solutions, said: “We’re thrilled to be partnering with Buckingham and benefiting from their experience in all areas of the multifamily sector.
”They have an exceptional track record over a very long period of time which is an obvious fit for our clients and capital.”
A previous version of this story misstated the amount raised for the Buckingham Multifamily Development Funding Vehicle.
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