Wingspan Development Group, a privately held multi-state development firm active in multifamily and mixed-use properties, announced WDG Finance has successfully closed the $16 million WDG GP Fund II, its second fund since 2021, to fuel the growth of the firm’s multifamily development business in Florida, Illinois and Wisconsin.
Fund investors include individuals, family offices, registered investment advisors and their clients, certified public accountants and their clients, and other independent wealth advisers.
Nearly 40% larger than WDG’s GP Fund I, with the average investment about 50% higher, the $16 million fund will participate in the equity of five ground-up projects: The Henry at Harms Woods in Skokie, Illinois; The Whitt in Riverview, Florida; Wekiva Ranch in Apopka, Florida; The Pabst Farm Development in Oconomowoc, Wisconsin; and The Vue in Elk Grove Village, Illinois. It will also fund a preferred equity position in NICHE in Tampa, Florida. All six properties are developed in partnership with Wingspan’s sister company Nicholas & Associates, a full-service contractor providing comprehensive construction management, design/build and general contracting services.
“Our strong relationship with Nicholas & Associates, which brings 45 years of experience delivering Class A projects on schedule while meeting proforma, gives us a tremendous advantage over most of our peers,” said Christopher Coleman, vice president of development for Wingspan. “As a result, we haven’t issued capital calls to our investors to keep our projects going, which hasn’t been lost on the investment community.”
As with the company’s first capital raise in 2021, the new fund offers investors a single vehicle to invest in multiple projects while earning partner-like returns, with investors occupying the same part of the equity stack as the general partner or sponsor. The company also is actively seeking direct investments for its individual projects, including ones financed by WDG GP funds.
Wingspan currently has nearly $900 million in multifamily assets, including over $350 million in stabilized assets and about $500 million in entitled projects under development across several Chicago suburbs, Southeast Wisconsin and Central Florida.
“Our success in developing, stabilizing and then ultimately selling projects like Sixteen30 in Plainfield, Ill., and Jade at North Hyde Park in Tampa, while delivering high returns is attractive to investors,” said Todd Younger, fund and investor relations manager for Wingspan. “2023 and 2024 have been difficult for many developers and fund managers, yet Wingspan has been able to achieve performance goals while continuing to build a project pipeline for the future.”
For transparent communications with WDG GP investors, Wingspan provides its fund members with a secure online portal where they can access intuitive investment dashboards, project updates and tax documents.
Specializing in Class A multifamily developments, Wingspan has recently completed two multifamily projects – The Dawson, a seven-story, 64-unit transit-oriented development (TOD) across the street from Wingspan’s popular Maple Street Lofts and the Mount Prospect Metra station in downtown Mount Prospect, Illinois; and NICHE, a 251-unit rental community in the North Hyde Park area of Tampa, that is 95% leased six months after opening.
“Our profitable sale of two developments in the tough second quarter of 2024 illustrates Wingspan Development Group’s ability to execute on high-quality, Class A projects,” said John Sclafini, fund and investor relations manager for Wingspan. “We speak to potential investors every day who appreciate our structure and thesis. Some contact us via the Wingspan website; many are referrals from current investors. We’re very proud to say current investors are one of our biggest lead sources.”
Wingspan also hosts a series of Power Hour lunches so individual investors, RIAs, CPAs and family offices can learn more about the firm’s history, current projects and pipeline.
Founded by a core team with over 80 years of combined real estate experience, Wingspan offers integrated site acquisition, development and construction capabilities, as well as relationships in key markets to help get projects done efficiently, from securing entitlements to stabilization. Wingspan uses award-winning property management teams to assist in leasing and stabilizing developments.
Wingspan Development Group is a nimble national developer focusing on multifamily, attached single-family and mixed-use developments. With in-house land acquisition, development and construction capabilities, Wingspan prides itself on its relationships and partners in key submarkets that allow the firm to move quickly in closing deals and completing best-in-class projects on time and within budget. Specializing in Class A multifamily developments, Wingspan has a number of rental and mixed-use projects in various stages of development in the Milwaukee, Chicagoland, Orlando and Tampa areas.
