Harbert Management Corporation’s sixth US real estate fund has partnered with Magellan Investment Partners to buy a 140-unit multifamily asset in the Minneapolis suburb of Osseo.

The manager, on behalf of its Harbert United States Real Estate Fund VI (HUSREF VI) fund, has formed a second joint venture with the Chicago based property investor to buy the 5 Central asset for an undisclosed sum.

Developed in 2015, the property is 97% occupied.

Adam Krug, the managing director of HUSREF, said: “We are very pleased to announce our second joint venture with Magellan Investment Properties and the successful closing of 5 Central.

“As HUSREF’s second investment in the Minneapolis-Saint Paul market in the last year, we recognize the robust economic growth and deep talent pool that characterizes this market. 5 Central presents an exceptional opportunity to partner with a proven team to create value through hands-on asset management and light capital infusion.”

HUSREF VI invests in real estate assets with value-add potential across major markets in the US. The fund raised $428.5m at the final close in December