Real estate investment firm and fund manager Citymark Capital has successfully reached the fundraising target of $150 million for its second fund, Citymark Capital U.S. Apartment Fund II (“Fund II”). 

Citymark’s platform provides joint venture equity for value-add, multifamily investments, executed by experienced regional and national operating partners. The firm targets institutional-quality, garden-style communities ranging in size from 100-400 units, in the Top 50 U.S. markets based on population. Total acquisition costs typically range between $40 million and $100 million.

Citymark launched Fund II in 2018 and secured commitments from 100% of institutional investors from its debut fund. “We are grateful to our investors for their trust and confidence in our strategy,” said Citymark Chief Executive Office Daniel Walsh. “Their support underscores our belief in the consistent performance of institutional quality multifamily investments through different economic environments, including market disruptions.”

Fund II’s current portfolio includes six multifamily communities.  The assets, ranging in size from 120 units to 408 units, are located in Las Vegas, Dallas, Houston, Atlanta and Raleigh. 

Citymark Capital’s $80 million debut fund closed in 2017 with diverse support from pension funds, insurance companies, high-net-worth individuals and family offices.  In 2018 the Fund was fully invested in six assets located in Atlanta, Orlando, Phoenix, Dallas, New York and Las Vegas.  Citymark has exited four of the fund’s six investments, with plans to exit the remaining assets in the near future.

National real estate private equity fund manager Citymark Capital, in partnership with InterCapital Group, has acquired a two-property, 554-unit Evergreen apartment portfolio in the Atlanta suburb of Fairburn, GA for $69.4 million. The acquisition of the Evergreen portfolio represents Citymark’s 12^thtransaction since its inception in 2015, bringing total units acquired to 3,345 and approximately $513 million of gross asset value.

The 310-unit Evergreen Park and 244-unit Evergreen Terrace are gated, garden-style communities, located approximately five miles apart in Fairburn, a bedroom community 17-miles south of downtown Atlanta.    Evergreen Park and Evergreen Terrace, built in 2002 and 2008 respectively, include a mix of one,- two- and three-bedroom apartment homes.   Evergreen Terrace also offers a four-bedroom floor plan.  The amenity rich communities feature swimming pools, tennis courts, outdoor grilling areas, putting green, children’s playgrounds and fitness centers.  The portfolio was 95 percent occupied at closing. 

Both communities were institutionally owned, and the joint venture will continue the seller’s capital improvement program upgrading unrenovated units across the portfolio with new flooring, appliances, hard surface countertops, hardware and lighting.  All common areas also will be upgraded and pet and leisure amenities will be added.   

Located in South Fulton County, the properties benefit from numerous demand drivers, most notably their proximity to several of the region’s most significant employment hubs including downtown Atlanta and the Palmetto-Fairburn-Union City Corridor. Part of the I—85 Corridor, the primary logistics route in the Southeast United States, the Palmetto-Fairburn-Union City Corridor has witnessed explosive economic growth over the past five years with Amazon, Duracell, Lowe’s and Samsung increasing their presence in the region.  Additionally, the properties are approximately 10 miles from Aerotropolis Atlanta, a community-derived development plan to drive economic investment, job growth and quality of life around the Hartsfield-Jackson Atlanta International Airport.  The largest airport in the world by passenger traffic, Hartsfield is currently undergoing a $6 billion expansion and modernization, which will build upon its $71 billion economic impact on the area. 

“Atlanta’s strong job growth, which is expected to continue for the next decade, has fueled rental demand, particularly in the moderately priced submarkets like South Fulton County,” said Citymark Founder and CEO Daniel Walsh.   “Leveraging on our partner’s experience and economies of scale, where they own and operate more than 5,500 units in the Atlanta metro, we plan to create housing environments that our tenants will be proud of, while at the same time generating attractive risk adjusted returns for our institutional investors.” 

Citymark entered the Atlanta market in 2018 with the acquisition of a 240-unit community in Atlanta’s I-20 West submarket.  Citymark successfully exited the investment in May 2019, as part of a $138 million portfolio sale that included assets in Las Vegas and Phoenix.   

The Atlanta-based CBRE team of Kevin Geiger, Paul Berry, Malcom McComb, Shea Campbell, Ashish Cholia and Colleen Hendris represented both parties in the transaction.  

Cleveland-based real estate private equity fund manager Citymark Capital has successfully exited 50% of its investments in Citymark Capital U.S. Apartment Fund I L.P.  with the sale of multifamily assets in Las Vegas, Atlanta and Phoenix for $138.8 million.  

“We’re pleased that we’ve been able to create a portfolio of highly liquid assets that are very desirable to best-in-class institutional buyers,” said Dan Walsh, founder and chief executive officer of Citymark Capital. “Citymark is very selective about the assets we acquire, focusing on U.S. markets where population and job growth are fueling strong demand for apartments for the foreseeable future.”

With the dispositions, Citymark and its operating partner InterCapital Group exceeded pro forma on all three communities in advance of its projected hold period, according to Walsh.  The sales included the 274-unit West Town Court in Phoenix and a two-property portfolio comprising the 368-unit Vintage Pointe in Las Vegas and the 240-unit Sweetwater Creek in Atlanta. Citymark acquired the Las Vegas and Phoenix properties in 2017 and the Atlanta property in 2018.

With a value-add investment strategy, Citymark makes property improvements designed to enhance the tenant experience while also keeping rents affordable for today’s workforce. 

“We focus on making improvements that bring value to residents, for example by upgrading unit interiors and enhancing amenities like workout facilities and pool areas,” said Walsh. “We also create spaces where people can socialize, such as by adding fire pits and grilling stations.”

Vintage Pointe is located along US Route 95 near numerous employers including the North West Medical District. Sweetwater Creek is located in the Atlanta suburb of Lithia Springs in the I-20 West submarket, near numerous employers, retail establishments, and recreational destinations. West Town Court is a 274-unit apartment community located in Phoenix’s West Valley.

Citymark Capital owns other multifamily properties in Dallas, Houston, Northern New Jersey and Orlando.