Hamilton Point Investments Launches $225M Offering Targeting Multifamily Assets

Hamilton Point Investments LLC announced the launch of HPI Real Estate Fund XV LLC, a Regulation D 506(c) offering which seeks to raise nearly $225 million from accredited investors.

HPI Fund XV follows the successful close of HPI Real Estate Fund XIV, which became fully subscribed raising approximately $230 million 12 months.

The new fund was formed, according to the company, for the purpose of acquiring multifamily assets in high-growth markets at below both peak pricing and replacement cost at a time where apartments are trading below their long-term trend valuations.

The firm believes that multifamily pricing in its target markets has decreased by approximately 20% from the 2022 market peak and is attractive, particularly relative to replacement cost. It expects that multifamily demand will remain strong as new supply continues to decline and single-family home pricing remains high.

“This is such an attractive time to be investing in multifamily. New construction is selling for less than replacement cost in the overbuilt but high growth Sunbelt markets where we have intimate knowledge and have built operational competency,” said Joshua Grenier, president of Hamilton Point Investments. With continued strong population growth and shrinking new construction pipeline, we are confident these markets will see strong revenue and value growth over the coming years.”

Since its inception in 2009, Connecticut-based Hamilton Point Investments has acquired nearly 35,000 apartment units for some $3.5 billion. The company has sponsored 15 real estate funds and nine Delaware statutory trust offerings.

It has taken 14 investment programs full cycle – seven funds and seven DSTs – with a weighted average internal rate of return of 18% net to investors, according to the company.

Earlier this month, the company announced the launch of HPI Tremont DST, which seeks to raise nearly $21.6 million from accredited investors seeking a 1031 exchange opportunity. The company said they anticipate HPI Tremont DST will provide a first-year cash flow of 4.3% that increases annually and has a loan-to-value of approximately 47.2%.

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