Hamilton Point Fund Closes After Raising $85 Million
HPI Real Estate Fund IV LLC, a Reg D private equity fund sponsored by Hamilton Point Investments, has closed after raising $85 million through 27 independent broker-dealers and registered investment advisors.
To date, the fund has purchased seven multifamily properties and has four additional acquisitions scheduled to close in January and February of 2017. Hamilton Point said it expects to fully deploy the remainder of the equity in one additional acquisition during the first quarter of 2017.
“We are pleased with our equity raise in Fund IV,” noted Hamilton Point co-founder David Kelsey. “HPI saw no decline in its ability raise and deploy capital in 2016 despite the DOL fiduciary rule, FINRA Rule-1502, and REIT and BDC sales dropping by as much as 75 percent for the year. We’ve benefited from strong distribution coverage and full-cycle fund events.”
According to the company, HPI Fund I went full cycle in 2014 with a 14.5 percent IRR net to investors and HPI Fund II went full cycle in 2016 with a 14.6 percent IRR net to investors. Both funds had hold periods of just over four years. The firm is targeting a late 2017 liquidation of HPI Fund III, which would result in another four-year term.
“HPI continues to focus solely on its core business strategy. We buy post-2000 construction apartment properties in secondary growth markets for below replacement cost, followed by a modest common area and unit interior upgrade program to increase revenue,” said co-founder Matt Sharp. “We’ve avoided the super expensive class A, tier-one markets that have become overbuilt and overpriced and we’ve not made the mistake of drifting into various other financial products and investment strategies as they become trendy.”
Hamilton Point Investments is a real estate investment company that owns and manages multifamily apartment properties and invests through a series of Reg D real estate private equity investment funds. The company has acquired more than 9,000 apartment units since formation and manages its assets through wholly-owned Hamilton Point Property Management LLC. The company is based in Old Lyme, Connecticut with its asset management office located in Atlanta.
