InvestmentsReal Estate

Mesirow Financial raises $567 million to invest in value-add multifamily properties

Just closed funding for its value-add fund and is positioned to acquire $1.6 billion in assets

Mesirow Financial raised $567 million in equity from a global pool of institutional investors to invest on value-add real estate in the multifamily and student housing sectors.

According to its release, the closing of this fund (Mesirow Financial Real Estate Value Fund III) positions the firm to acquire more than $1.6 billion in real estate assets.

"Our value proposition is to provide qualified institutional investors with compelling direct investment opportunities in the real estate industry that they might otherwise not have access to. This strategy leverages not only our investment acumen, but our deep-rooted relationships in the market—all for the benefit of our clients,” Mesirow Financial Real Estate-Direct CEO and Co-Chief Investment Officer Alasdair Cripps said in a statement.

“As stewards of capital, we will continue to be opportunistic and disciplined as we evaluate opportunities to acquire real estate assets," he added.

Over the last five years, Mesirow has raised over $1.5 billion in equity and invested in roughly 13,000 multifamily units across the nation.

"This is a great milestone for our investors and for the team," Mesirow Financial President Dominick Mondi said in a statement.  

"As a firm, we remain excited about the significant opportunities offered in the multifamily real estate market," he added.

Up until recently, multifamily value-add properties have been a hot commodity for investors. This trend appears to be at or near its peak such that now, intense competition for the small volume of obvious value-add deals left has made it almost impossible for smaller investors to operate in the space. Value-add appears to be a primarily institutional investor product now, which may explain the decrease in volume for the product seen recently.

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