HPI Real Estate Fund V LLC, a Reg D real estate private equity fund sponsored by Hamilton Point Investors, has closed after raising $115 million in investor equity. The funds were raised from 1,365 individual accredited investors brought in through 27 independent broker-dealers and 9 registered investment advisers.
The fund plans to acquire, with leverage, approximately $300 million of multifamily apartment properties, and has already closed on seven assets with two more under contract to close over the next 30 days.
“Hamilton Point Investments’ capital raising nearly doubled in 2017, which is strong when you consider that REIT and BDC sales dropped substantially during the year,” remarked HPI cofounder David Kelsey. “However, we’ve got a strong track record of going full-cycle with our first three funds, all with mid-teens IRRs net to investors. Not so much with most of the REITs and BDCs.”
“We don’t have an army of wholesalers,” noted co-founder Matt Sharp. “Our two teams, Todd Williams and Randee Soriano on the West Coast, plus Scott Farrington and Chrissy Martel on the East Coast, raised $115 million in 10 months. We also have Nick Detorie in key accounts working to selectively expand and interact with our selling group members. That’s it in terms of equity raising professionals.”
Hamilton Point Investments was founded in 2009 and invests through a series of real estate private-equity investment funds raised through a network of broker-dealer financial advisors. It acquires post-2000 construction apartment properties located in secondary growth markets for below replacement cost and has completed acquisitions totaling more than 12,000 apartment units for more than $1 billion. Hamilton Point Investments is based in Old Lyme, Connecticut, and its wholly-owned asset management office, Hamilton Point Property Management, is located in Atlanta, Georgia.