Interstate Equities Closes $215M Multifamily Value-Add Fund

Interstate Equities Corporation (IEC) has completed the final close of IEC Institutional Fund VI with $215 million in equity commitments, assembled entirely in-house over the past year.

The vertically integrated real estate firm will use Fund VI to execute its value-add strategy, acquiring multifamily communities ranging from 40 to 400 units across high-barrier West Coast markets. At the time of close, IEC had already committed nearly 30% of the fund’s capital across seven properties totaling 875 units, representing more than $330 million in total capitalization.

Initial acquisitions include workforce housing assets in San Jose, Mountain View, Sunnyvale, Redwood City, and Seattle, as well as two student housing properties near the University of California, Davis. The fund will maintain a strong focus on the San Francisco Bay Area, where IEC has operated since 1981.

“Institutional investors are placing a premium on clearly defined demand drivers, disciplined underwriting and a partnership orientation,” said Marshall Boyd, president and chief investment officer of IEC. “Fund VI is small but mighty, investing with conviction in markets we have operated in for decades.”

Boyd added that the fund structure enables select joint venture partners to co-invest alongside IEC, extending its overall purchasing power.

Goodwin Procter LLP served as legal counsel for the fundraise.