Interstate Equities Corporation (IEC) has raised $445m (€384.5m) for its fifth US value-add multifamily property fund.

IEC said the amount raised for the IEC Institutional Fund V fund at close exceeds the $300m raised for the predecessor fund in 2018.

IEC targets dated multifamily apartment properties and transforms them into modernised, boutique-style assets at attractive price points.

The manager said Fund V acquires, renovates and repositions multifamily properties across California and Washington.

Marshall Boyd, co-president and CIO of IEC, said: “Due to our strong partnership with our investors, whom we think of as friends, we were able to close Fund V oversubscribed after seeking a waiver to surpass the initial hard cap of $400m just seven months after the funds’ initial launch and without using a banker in the process. Efficient fundraising allows us to focus on investing and managing carefully,”

Boyd said IEC had a 98% reinvestment rate from the predecessor fund.

Julia Boyd Corso, co-president and COO of IEC, said: “The ability to raise this capital and surpass the initial hard cap, amid the pandemic, speaks to the strength of our strategy, the breadth of our team, our tenure in the industry, and the integrity with which we approach every situation.

“Our investors recognise the strength of our business platform and our unique ability to identify assets that need repositioning and create value through renovations and optimizing operational inefficiencies.”

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