Mesirow announced a successful capital raise for the Mesirow Financial Real Estate Value Fund IV (the “Fund”), the latest in the firm’s series of risk-balanced, multi-family value-added investing opportunities. Reflecting the team’s record of strong risk-adjusted returns, fundraising was oversubscribed after reaching a hard cap of $750M established to ensure optimum portfolio diversification and the disciplined pacing of investments.
Managed by Mesirow Institutional Real Estate Direct Investments (“IRED”), the Fund invests in the multi-family housing sector across the top 25-30 markets within the US. In a post-pandemic environment, the team’s sector-focused strategy is positioned to capitalize on long-term secular themes, including an increasing US population, growing numbers of Generation Z, Millennial, and Baby Boomer renters, and a propensity to rent across a broadening grid of socioeconomic population cohorts.
Over the last five, ten, and thirty-year periods, apartments have outperformed all other property sectors tracked by the MCREIF Property Index1, creating an opportunity to generate positive alpha. Apartment lease renewal terms also provide investors with a degree of protection against rising inflation.
“We are pleased by the marketplace reception to this latest offering and by the strong conviction of our investors,” said Alasdair Cripps, Chief Executive Officer of Mesirow IRED. “Apartments are the only major property type where individuals as end users directly drive necessity-based demand. In a normalizing post-COVID market, we believe that constructive fundamentals – and strong results for our investors – will be supported by under-build in the apartment sector as well as rising construction costs and labor shortages in the housing industry.”
