Eller Capital Partners, a private equity real estate investment firm with specialized experience in multifamily acquisitions, renovation and asset management, today announced the launch of a new growth initiative that is being deployed for investment opportunities in major metropolitan areas across the Southeastern United States.
Eller has set a target of $50 million for a new fund, and will execute a dual investment strategy that serves the firm’s institutional and private wealth partners. The fund has already acquired four multifamily communities spread across North and South Carolina. Eller and its investment partners will continue to explore opportunities for a variety of asset types, including garden, mid-rise and high-rise apartment communities.
Initial capital from the fund has been invested alongside capital from institutional partners to acquire the following multifamily communities:
Alta Surf (216 units; Myrtle Beach, SC)
Northcliffe Forest (288 units; Winston-Salem, NC)
West End Flats (188 units; Carrboro, NC)
Midtown 501 (248 units; Chapel Hill, NC)
“Current market conditions and shifting demographic patterns have spurred new demand for investment vehicles that can capitalize on the exceptional amount of growth and development occurring in the Southeast,” said Daniel Eller, founder and CEO of Eller Capital Partners. “Eller Capital’s prior track record in generating meaningful, risk-adjusted returns through our proven repositioning blueprint has earned the trust of our investment partners. We anticipate sharing more news on our growth in the near future.”
Eller expects that its current growth initiative could result in the acquisition of 15-20 assets worth between $750 million and $1.25 billion, variable depending on if the assets are wholly owned or acquired through joint ventures with institutional partners.
Since 2011, Eller has acquired and enhanced value-add multifamily assets with an aggregate value of approximately $375 million, in each case applying a vertically integrated, value-add approach that has generated industry leading investment returns.
Eller Capital Partners has been very successful in transforming well-located 20-35 year old properties through large scale renovations that modernize the building exteriors, reimagining and improving the amenity offerings and upgrading all unit interior finishes to make them more comparable to that which is found in new multifamily construction. Eller also pursues acquisition opportunities through which it can implement a less intensive interior upgrade program in well-located, 10-20 year old assets with the intent of refreshing the property to make it competitive with new assets in the market.
Multifamily investment activity continues to hit unprecedented levels throughout the Southeast, with a recent report from CBRE finding that institutional investors and REITs have increased their annual investment in the region by more than 30% from pre-recession levels. According to the U.S. Census Bureau, millennials are now renting at higher rates and for longer periods of time compared to prior generations, while the number of baby boomers in the rental market is expected to double in the next decade.
The Eller leadership team has participated in over $2 billion worth of transaction volume, with specialized experience in acquisitions, dispositions, asset management, property and construction management, land entitlement, and ground-up development. The team averages 20 years of industry experience cultivated at leading real estate firms.
Founded in 2011, Eller Capital Partners is one of the fastest growing private equity real estate investment firms in the Southeast. The firm is currently active in Raleigh-Durham, Wilmington, Greensboro and Myrtle Beach and has acquired approximately 3,500 units to date.
Contact: Nick Banaszak