BMC Investments, a Denver-based, vertically integrated real estate investment manager, announced the final closing of its inaugural fund – BMC Multifamily Value Add Fund I – successfully hitting its $150 million hard cap.
The fund received support from prominent investors, including a global institutional alternative asset manager as the anchor investor. In addition, the fund has attracted participation from large family offices and ultra-high-net-worth individuals. This diverse group of investors further demonstrates the appeal of BMC Investments’ value-add approach, the relationships cultivated with its investment partners, and its proven track record.
“We are thrilled to have successfully launched the fund in a very difficult fundraising environment. We believe this represents the next step in BMC’s evolution from our founding as a small firm in 2010 to a multifaceted real estate platform with an experienced and dedicated team today,” said Jarrett Posner, founding partner and chairman of BMC Investments.
The fund is focused on investing primarily in value-add and distressed acquisitions of workforce and attainable housing across the U.S., capitalizing on the anticipated distress from over-levered and under-capitalized owners, along with pursuing selective developments. The fund will invest alongside fund limited partnerships (through sidecars), co-investors and joint venture partners, providing BMC with the ability to deploy over $2.5 billion of total capital, inclusive of debt and equity.
“The fund seeks to deliver attractive risk-adjusted returns by capitalizing on the pending distress resulting from flawed capital structures utilized by many buyers the past several years, which relied on excess leverage with floating rates and short duration. When combined with unrealistic operating assumptions, we believe it has created an environment that will lead to attractive acquisition opportunities,” said Matt Joblon, founding partner and CEO of BMC Investments.
“After more than a decade of success in raising equity in deal-by-deal basis, we made the strategic decision to raise our first discretionary fund as we continue to evolve into an institutional real estate manager. With this investment vehicle in place, we believe we are well positioned to continue to take advantage of market opportunities over the next 24 to 36 months,” said Erin Little, partner and chief financial officer of BMC Investments.
To date, the fund has already deployed more than one-third of its equity commitments across six investments located in Denver, Florida and North Carolina, reflecting BMC’s ability to swiftly capitalize on opportunities in high-growth markets.
