Real estate investment professionals Brennen Degner and Paul Pittman have launched a private real estate investment firm with $30m (€28.7m) in general partner capital from funds managed by private equity firm Inceptiv to invest in US middle-market multifamily value-add opportunities.
Platte Canyon Capital (PCC) will target mismanaged and undercapitalised multifamily assets in markets characterised by strong fundamentals, and growth potential including Dallas, Austin, San Antonio, Denver and Salt Lake City.
Inceptiv, which specialises in providing specialty general partner capital solutions to real estate independent sponsors, said its focus is on empowering growth-oriented platforms that exhibit “strong leadership and a well-defined strategy”.
Hezy Shalev, managing partner at Inceptiv, said: “We see a compelling opportunity in partnering with Platte Canyon Capital whose principals have a combined $5bn in transactional experience. The PCC management team combines exceptional expertise in multifamily investments with a strategic vision for growth and a proven ability to scale operations.
“Our investment reflects our confidence in their ability to navigate today’s complex market environment and create significant value for investors.”
With Inceptiv’s support, PCC is positioned to acquire up to $1bn in assets through joint venture partnerships with moderate leverage over the next three years, the company added.
Degner, the former founder and CEO of multifamily investment firm DB Capital Management, said: “Our launch comes at a pivotal moment for the multifamily industry.
“Valuations have pulled back significantly over the past few years, creating opportunities we’ve been preparing for. While we haven’t yet seen the widespread distress many have anticipated, we believe it’s inevitable to some degree—and now, with our financial resources, we’re well positioned to act decisively when those opportunities arise.”
Degner will continue to be involved in DB Capital in an advisory capacity.
PCC chairman Pittman added: “The multifamily sector presents a unique opportunity in the current market, and Platte Canyon Capital is well-positioned to capitalise on it.
“Brennen’s operational expertise, experience in our targeted markets, and ability to navigate complex investments align perfectly with my focus on strategic growth and disciplined capital deployment. Together, we are building a platform designed to deliver exceptional results while adapting to the evolving dynamics of the industry.”
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