Lake Park, Fla. – American Landmark Apartments, one of the fastest-growing multifamily owner-operators in the country, and its equity affiliate Electra America, announced today the final closing of its 2018 Multifamily Fund II, which raised $462 million from institutional and private investors. The firm also officially announced the launch of its 2019 Multifamily Fund III, with a target raise of $500 million for the acquisition of value-add multifamily assets throughout the Southeastern U.S.
American Landmark’s portfolio of 28,000 apartment units is valued at roughly $4 billion.
To date, American Landmark has raised over $670 million in two funds from domestic and international investors, which it has deployed in the acquisition of thousands of apartment units throughout Georgia, Florida, North Carolina, South Carolina, Tennessee and Texas. Both funds are outperforming original expectations and distributing quarterly, noted American Landmark/Electra America CEO Joe Lubeck.
“We achieved our goal of $1.5 billion in acquisitions in 2018, capping off a successful year that exemplified our strength at identifying off-market opportunities, executing quickly and generating competitive, risk-adjusted returns for investors,” said Lubeck. “We will stay the course in 2019 and continue to focus on Sun Belt cities where the demand for workforce apartments – particularly Class A minus and Class B product – is strong, and where rents are growing faster than the national average. We are half way to meeting our goal of $2 billion in acquisitions by the end of 2019.”
American Landmark’s Multifamily Fund II comprises 37 multifamily assets with 12,600 units in the Southeastern United States, and $392 million of the $460 million raised has been invested. The fund will continue to purchase additional assets that meet American Landmark’s stringent criteria until all the capital raised has been invested.
Investors in Electra America’s first two funds include private investors, as well as institutional investors such as Psagot Investment House, Bank Leumi, the pension funds of Bank Leumi employees, IBI, the Gilad Pension Fund, universities, insurance companies and other pension funds. Electra’s principals are also substantial and material investors in each of the funds.
In the past two years, Electra Real Estate has sold 29 multifamily assets in the US (about 7,000 units) for $950 million, achieving an IRR of 26.5%.
An expert in value-add and distressed real estate repositioning, Lubeck and his partners have bought and sold over 100,000 apartment units, valued at over $8 billion, since 1996.
