Fundraising - MAY 2, 2014

Berkshire raises $396m for multifamily fund

by Reg Clodfelter

Berkshire Property Advisers has raised $396.1 million for its domestic multifamily fund, Berkshire Multifamily Value Plus Fund III, according to a filing with the SEC.

The value-added fund launched in March 2012 with a fundraising goal between $400 million and $475 million. A target final close date has not been disclosed, though the fund could raise another $80 million before closing itself to further commitments.

The fund will use the same strategy as its predecessors, employing a diversified strategy of debt and equity investments in multifamily properties across the United States, with a primary focus on acquisition and a maximum of 25 percent of the fund’s capital devoted to development. 

The fund is seeking net returns in the range of 12 percent to 13 percent, and is anticipating leveraging itself up to approximately $700 million of investment power. Berkshire has co-invested in the fund up to $10 million.

Berkshire Property Advisors is the operating entity of The Berkshire Group and is responsible for the property management of its multifamily portfolio and a series of funds including the Berkshire Income Realty Fund, a $600 million REIT, and Berkshire Multifamily Value Funds I and II, which raised $300 million and $600 million, respectively.

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