US suburban residential specialist Continental Properties Company has closed its latest development fund at $203m (€181m).
The manager said proceeds from Continental Properties Real Estate Development Fund IV will fund the development of 10 to 15 suburban multifamily communities across the US by the end of 2027.
The fund will invest in workforce-attainable rental housing under the manager’s Springs Apartments and Authentix Apartments brands.
Jim Schloemer, co-founder and CEO of Continental Properties and recent chairman of the National Multifamily Housing Council, said: “Closing our fourth development fund is a result of the same disciplined, data-driven approach that has guided Continental for more than 47 years. Multifamily construction starts have declined dramatically since the peak in 2022, and much of the development we’ve seen in recent years has been focused exclusively on the luxury segment at the expense of the middle market.
“That widening gap between supply and demand, combined with a historically wide affordability gap between renting and owning, gives us real conviction in Development Fund IV’s strategy of building workforce-attainable suburban housing in under-supplied markets.”
Kim Grimm, EVP and chief development and construction officer at Continental Properties, said: “We’re excited about the strength of the pipeline we’ve built for Development Fund IV.
“At the same time, the commitments we now have in hand put us in a competitive position to look at compelling opportunities in the market, and we’ll continue to be selective in pursuing those that best fit our strategy.”
Alex Wagner, VP of investor relations at Continental Properties, said: “We’re grateful for the continued trust of our existing investors and the many new partners who joined us in this fund.
“That confidence gives us the ability to move quickly on a well-located, geographically-diversified pipeline, and we look forward to putting this capital to work to deliver strong outcomes for our investors and the communities in which we operate.”
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