Hamilton Point Buys Multifamily Property Near Memphis
HPI Real Estate Fund V LLC, a $100 million real estate private equity fund sponsored by Hamilton Point Investments, purchased Annandale Commons, a 400-unit multifamily community located in the Memphis suburb of Annandale, Mississippi for $30 million.
HPI Real Estate Fund V focuses on investing in post-2000 construction apartment properties, located in secondary growth markets, and purchased below replacement cost. The firm generally completes modest common area and unit interior renovations to increase property revenue and value.
“Annandale, Mississippi is a fast-growing market south of Memphis,” said Matt Sharp, HPI co-founder and managing principal. “Memphis…residents have fled across the border into the more hospitable North Mississippi which has lower taxes, better schools, and less crime and corruption, but is only 15 minutes away.”
Co-founder David Kelsey added, “Minimal investment in capital items occurred over the years, leaving the property well-suited for the common area and unit upgrade program HPI generally pursues. We expect to realize some management upside as well.”
The Annandale purchase marks the second acquisition for the fund. As previously reported by The DI Wire, HPI Real Estate Fund V purchased its first property in February 2017 for $13.5 million.
Constructed in 2000, the property features one-, two-, and three-bedroom units that range in size from 760-1210 square feet and include walk-in closets, central heat and air, and full kitchens with refrigerators and built-in microwaves. Property amenities include a swimming pool, fitness center, and playground.
Hamilton Point Investments is a real estate investment company based in Old Lyme, Connecticut that owns and manages multifamily apartment properties and invests through a series of Reg D real estate private equity investment funds. The company has sponsored five real estate funds and seven DSTs to date, acquiring more than 11,000 apartment units since formation. HPI manages its assets through wholly-owned Hamilton Point Property Management LLC, which is located in Atlanta.
