Mill Creek chairman, chief executive officer, and president, William C. MacDonald, tells GlobeSt.com where his firm will put capital to work, having just created four new investment vehicles in the US residential rental sector for Mill Creek Residential.
“We’ve identified a strong pipeline of acquisition and development opportunities across 29 target markets in the US, primarily focusing on the “smile” states, including major cities on the West and East Coasts, along with high-growth Sun Belt markets,” McDonald said.
“As it relates to our single-family rental development strategy, we are sourcing sites for construction across our target markets that benefit from highly rated schools, proximity to major employers, and easy access to necessity-based retail and recreation.”
McDonald said Mill Creek’s multifamily investment partnership builds upon a pre-existing partnership we have with QuadReal to develop multifamily assets in high-growth and high barrier-to-entry markets – primarily urban locations – with strong and growing renter bases.
“Lastly, value-add acquisition strategy is primarily focused on acquiring high-quality, well-located multifamily assets below replacement cost and leverage our vertically integrated platform to implement high-impact improvements through renovations and management efficiencies, maximizing value for residents and generating attractive risk-adjusted returns for investors.”
Two separately managed funds will develop single-family rental communities and have more than $20 billion of AUM, and the second is with a large global financial institution.
The investment partnership focused on multifamily development represents a follow-on commitment from QuadReal Property Group, a Canadian-based global real estate investment firm with more than CAD $70 billion of AUM.
The Mill Creek Multifamily Value-Add Fund includes both existing and new clients of Mill Creek.
Hodes Weill Securities acted as financial advisor and global placement agent for Mill Creek in connection with the formation and capitalization of the four investment vehicles.