Buckingham Companies, a full-service real estate company based in Indianapolis, this month closed its second real estate fund, the value-add Buckingham Multifamily Fund 2 (BMF2) at $215 million.
This follows the firm’s inaugural BMF 1 Fund, also using a value-add strategy of acquiring multifamily and mixed-use properties located in surging U.S. secondary markets in the Midwest and Southeast.
Additionally, Buckingham announced the first closing of a new multifamily development funding vehicle with a target of $160 million. The funding vehicle is intended to target ground-up construction of amenitized, workforce multifamily properties in U.S. secondary markets. BMF2 and the new development funding vehicle plan to collectively acquire or develop more than $1 billion in value of multifamily assets over the next three years.
BMF2 closed and achieved 100% reinvestment participation from previous fund investors in Buckingham Multifamily Fund 1 (BMF1), Buckingham’s flagship fund, which closed in May of 2018. Investors in Fund 2 include large American and non-U.S. public and private institutional investors.
Fund 2 has a continued focus on multifamily markets in the Midwest and Southeast and has already allocated 45% of its commitments to multifamily communities in four cities. Continuing its value-add investment thesis for Fund 2, Buckingham will increase asset value through management efficiencies, property upgrades, interior/exterior renovations and improved amenities.
Buckingham has also partnered with LaSalle Global Partner Solutions on investing in the development of workforce housing. The development funding vehicle’s portfolio is planning to invest in six new ground-up construction multifamily development projects located in growing secondary markets, including Raleigh-Durham, Louisville, and Denver. Two projects have broken ground upon the development funding vehicle’s first close, in Raleigh-Durham and in Denver’s northern suburb of Loveland, CO.
Buckingham has a 38-year track record of delivering high-quality apartments via its fully integrated platform with an in-house team. The development funding vehicle’s strategy is centered on Buckingham’s proprietary development model focused on cost efficiencies, speed to market, and delivering elevated design and amenity packages in growing housing markets in need of high-quality multifamily housing.
