Following the recent sale of its Last Mile Penn industrial property in Minneapolis and the acquisition of three multifamily properties in Wisconsin, Midloch Investment Partners has closed its second “value fund” (Midloch Value Fund II) to new investors after raising $60 million.
The firm initially targeted $50 million in equity capital from investors.
Midloch intends to launch its third value fund (Midloch Value Fund III) over the summer, targeting $75 million of equity to be invested in well-located multifamily and commercial properties in the Midwest and other areas.
Midloch, with offices in Chicago, Milwaukee and Minneapolis, is principally focused on the Midwest but has made a number of investments in other markets, from the Southeast to the Sunbelt to the Mountain West.
Midloch generally invests with other partners in properties valued at up to $50 million. To date, Midloch Value Fund II has acquired 13 properties in 11 transactions, including these:
- Country Meadows (Multifamily), Madison, WI
- Graceland Retail Portfolio (Retail and land), Minneapolis, MN
- Harbor Estates (Multifamily), Sheboygan, WI
- LaSalle Plaza (Office), Minneapolis, MN
- Riverwalk Apartments (Multifamily), Dallas, TX
- Science Center Business Plaza (Industrial Flex), Minneapolis, MN
- 4321 Piedmont Parkway (Industrial), Greensboro, NC
- 9231 Penn Avenue South (Industrial), Minneapolis, MN
Based on investments that have been fully realized, Midloch Value Fund II has generated an IRR to investors of 45%. Midloch generally targets total returns of 14-18% annually.
The total capital targeted for raise and investment by Midloch through its three value funds is $165 million.
