Lion Real Estate Closes $200 Million Fund – Multi-Family Real Estate News

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Lion Real Estate Group has closed a second fund used to acquire communities across the Sunbelt. The company closed his LREG Multifamily Fund II, raising over $200 million. The fund had its first closing in September 2021 and has since raised from family offices, high net worth investors and company capital.the company said apartment house news The fund must consist of return investors.

The funds will be used to continue LREG’s Sun Belt acquisition strategy. LREG co-founder and managing principal Jeff Weller said in a prepared statement that the company has already allocated his 60% of the fund to suitable assets. According to LREG, the properties the fund has been involved with so far are in Dallas and Nashville, Tennessee, with vintages from the 1970s through the 1980s, and cap rates hovering at his mid-to-high 4%. .

LREG also said MHN It also revealed that it has two value-added deals in Atlanta that will be part of the fund. These two transactions are currently in escrow and the company expects to complete them in the coming weeks, LREG co-founder and managing principal Mory Barak said in a prepared statement. , said that there are cases where the interest rate and inflation rate we are seeing now will result in a 20% discount on the underlying assets.

Dallas and Beyond

Prior to LREG Multifamily Fund II, the company launched its first fund called Marble Partners Fund I. In total, the Fund acquired real estate valued at over $500 million across 15 properties totaling 3,503 units.

Overall, since its inception in 2007, LREG has acquired over $1.2 billion in assets derived from 11,044 units totaling 107 properties across 10 states. The Dallas-based company’s current portfolio totals 6,510 units and is concentrated in Atlanta, Austin, Texas and Dallas. , Denver and Nashville, Tennessee markets. Earlier this year, LREG acquired a 172-unit community in Dallas with plans for interior and exterior renovations.

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