Sponsor: Clear Investment Group
Equity raised: $300 million
Target: Workforce housing
Target markets: Secondary and tertiary markets around the U.S.
Clear Investment Group is planning to raise $300 million through its Clear Opportunities Fund II to acquire workforce properties around the country.
The Chicago-based apartment owner is focusing on properties with strong fundamentals and untapped potential in stable markets where workforce housing supply is low. The firm, which currently has 4,000 units, plans to acquire roughly 9,000 apartments with Fund II.
“The fund is acquiring large, 500-unit-plus multifamily portfolios in secondary and tertiary markets throughout the US, with a focus on submarkets where household income is $35,000 to $75,000 — really the heart of working America,” Amy Rubenstein, CEO of Clear Investment Group, told Multifamily Dive.
CIG, which has completed $600 million in transactions with more than 150 different portfolio properties, will target multifamily properties in need of repositioning and operational efficiencies to enhance resident experience and investment performance.
“Anywhere from 15% to 20% of our basis in a deal is physical upgrades: unit renovations, common area rehab, exterior beautification and deferred maintenance,” Rubenstein said.
Macro events, like higher costs of capital and the threat of tariffs driving up operating costs, could force distressed sellers to transact, according to Rubenstein.
“CIG is also uniquely positioned to take down these portfolios, given access to capital [on the debt and equity side] that understands our strategy,” Rubenstein said. “At the same time, we remain a slim, nimble team that can move quickly on portfolios that are a bit more complicated to underwrite.”
Rubenstein is pleased with the early results of the capital raise so far. “Fundraising is still underway, but we have seen a lot of success already,” she said.
