Hamilton Point Launches Another Fund Seeking $200 Million Capital Raise
Real estate private equity firm Hamilton Point Investments LLC announced the launch of HPI Real Estate Fund XIV LLC, a Regulation D 506(c) offering available to accredited investors. HPI Fund XIV, like its predecessors, seeks to raise up to $200 million of equity through independent broker-dealers and registered investment advisers for the purpose of acquiring approximately $450 million of multifamily assets in high growth markets at below peak pricing and below replacement cost.
HPI Fund XIV intends to acquire newer Class A multifamily properties from distressed sellers in markets that have experienced significant overbuilding, newly constructed properties where construction loans are coming due, properties impacted by rising interest rates, property receivership sales, sales of defaulted mortgage notes, and sales of foreclosed apartment properties. HPI believes opportunities may exist to purchase such properties at a discount to previous valuations.
Hamilton Point Investments said it has been on a buying spree, taking advantage of reduced pricing. In May and June 2024, HPI bought four Houston properties in a prior fund, totaling 1,174 units, for $195 million. HPI secured the properties, built in 2022, at a cost per unit of approximately $166,000.
“Those assets would have cost $210,000 per unit two years ago,” said Matt Sharp, co-founder and managing principal of HPI. “We estimate that building a new apartment building in Houston today would cost $190,000 per door or more.”
Earlier this year, Hamilton Point Investments announced the close of HPI Real Estate Fund XII, which ultimately raised $196 million through 32 independent broker-dealers and 18 RIAs. The equity was fully invested in eight multifamily properties totaling 2,118 apartment units.
Hamilton Point Investments LLC is a real estate owner and manager with a portfolio spanning multifamily properties, student housing, hotels, and manufactured housing communities. Since inception in 2009, Hamilton Point Investments has acquired nearly $3.5 billion of real estate, including more than 35,000 apartment units. The company has sponsored 13 real estate funds and seven Delaware statutory trust offerings. To date HPI has taken seven funds and all seven DSTs full cycle with a weighted average internal rate of return of 18% net to investors.
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