Praedium X Middle-Income Housing Fund takes ownership of 11 multifamily properties
The Praedium Group, a multifamily manager focused on investing in rental housing in suburban growth markets throughout the United States, has acquired 11 properties on behalf of its 10th fund, Praedium X Middle-Income Housing Fund.
The value-add vehicle closed in April with more than $728 million of commitments, surpassing its initial target of $400 million with backing from new and existing investors. The investor base consisted of public and corporate pension funds, insurance companies, foundations and endowments, and family offices. Two pension funds based in San Jose also contributed to the fund’s closing.
Fund X is currently investing in multifamily properties in targeted suburban growth markets, primarily in the South and West regions of the United States. The fund owns 3,474 units among its 11 properties, located throughout Florida, Georgia, Texas and Nashville, according to a recent company update.
Despite the public health crisis of COVID-19, Praedium said it was able to overcome challenges and adjusted value-add project plans to reflect the changing times. For example, the firm increased digital leasing content, adjusted renovation plans to meet changing tenant preferences and added spaces to support the shift toward remote working.
“By being agile and responding to tenant needs posed by the pandemic, Praedium was able to persevere in a difficult environment and deliver returns to their investors,” said the firm in a statement.
During the past 31 years, Praedium has established a series of 10 private equity vehicles that have completed more than 390 transactions, representing $12 billion of gross invested capital.
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