Ballast Rock Launches Sunbelt Multifamily Fund
Alternative assets investment firm Ballast Rock is targeting $100 million for its third fund, Sunbelt Multifamily Fund III LP, focused on the southeastern U.S.
Like previous Sunbelt funds, it will acquire and renovate a diverse property portfolio, which comes five years after the firm’s first vehicle. The firm said it has identified and is performing due diligence on a value-add property that would represent the first acquisition for the new fund.
“Our team has diligently been underwriting deals since our last acquisition in early 2023 and has looked at close to 400 assets in that time,” said Ian Garcia, COO and portfolio manager for the Sunbelt Funds. “We are extremely conservative on our underwriting and will only ever consider investing in a deal if we have a high degree of confidence that it is going to clear our stringent investment objectives.”
Charleston, SC-based Ballast Rock launched its first fund in 2019 and over the ensuing two years acquired nine properties totaling 1,110 apartment units. The fund began dispositions in early 2022, selling off four properties. The firm anticipates exiting the remaining five assets opportunistically over the next 12 to 18 months.
Its sophomore fund launched in 2021 and over roughly two years acquired nine properties with 1,039 apartment units.
Ballast Rock invests in private equity, venture capital and real estate. In April last year, the firm launched broker-dealer Ballast Rock Capital.
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