Real Estate - JANUARY 20, 2022

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Origin Investments launches $250m fund to invest in ground-up developments

by Kali Persall

Origin Investments, a private real estate manager that provides solutions for individual investors, family offices and advisers, is launching a new $250 million closed-end capital fund.

Growth Fund IV is seeking to invest in up to $1 billion of ground-up developments in high-growth, high-performing markets across the U.S. Southwest and Southeast. The fund will seek to invest in 10 to 12 of such projects. The initial fund term ends four years after the end of the capital-raising period.

“We see the greatest opportunity in ground-up development, given changing multifamily housing market conditions,” said Michael Episcope, co-CEO of Origin Investments. “There is too much investment capital targeting value-add opportunities today, and it’s pushing pricing on existing deals well above replacement cost. Developing is just a better way to enter these markets because we will have a portfolio of class A properties at a lower basis than properties 10 to 15 years older.

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