Lion Real Estate Group Closes LREG Multifamily Fund II with Over $200 Million in Commitments
LREG Multifamily Fund II, LP Will Continue Lion’s Strategy of Investing in Value-Add Multifamily Assets Throughout the Sunbelt
60% of New Fund’s Capital Already Allocated
DALLAS, Aug. 25, 2022 /PRNewswire/ — Lion Real Estate Group, LLC (“LREG”), a real estate investment and asset management firm focused on acquiring value-add and opportunistic multifamily properties, today announced the closing of its latest fund, LREG Multifamily Fund II, LP, at over $200 million. The new fund, which was raised from a mix of family offices, high net worth investors, and the firm’s capital, will continue to execute on LREG’s strategy of acquiring value-add multifamily real estate across the Sunbelt.
“We are extremely pleased to have closed our latest fund,” said Jeff Weller, Co-Founder and Managing Principal of LREG. “This is an opportune time for a firm of our size to be buying multifamily assets which can be a great source of risk-adjusted returns and also provide tax efficiencies for our LP base. Our ability to be nimble in this uncertain market is precisely why we have been able to already allocate 60% of the new fund into assets that fit our investment criteria.”
“The macroeconomic factors of rising interest rates and inflation that are currently playing out in the U.S. mean that we are seeing, in cases, a 20% discount in our target assets,” added Mory Barak, Co-Founder and Managing Principal of LREG. “The overall health of this sector is very strong, with higher occupancy rates and lower rent volatility than other real asset classes. We feel very well positioned to continue executing on the strategy that has served us and our investors well for over 15 years.”
The multifamily market continues to benefit from a supply-demand imbalance, with asking rents up 12.6% year-over-year through July as the U.S. experiences a 600,000-unit apartment shortage, according to the National Multifamily Housing Council and the National Apartment Association. As of June 2022, occupancy rates remained at 96% across the country, per Yardi Matrix.
LREG Multifamily Fund II, LP follows Marble Partners Fund I, LP, which acquired over $500 million in real estate across 15 assets encompassing 3,503 units. Over the last three years, and despite the global pandemic, LREG has continued to grow with employee headcount increasing by 30% and the firm’s value of assets under management increasing by 30%.