The $5 billion asset management firm Bailard launched a new development-focused multifamily real estate strategy, alongside its legacy open-end diversified core private equity real estate fund.
The Bailard Multifamily Fund is set to focus on building Class A Attainable units with first-class amenities in under-suppled growth markets around the country. The fund seeks to capitalize on the dearth of affordable/workforce rental housing in the U.S.
“The past two years have been hugely impactful on housing markets across the country, especially for renters,” said Preston Sargent, president and CEO of the Bailard Real Estate Fund and head of Bailard real estate. “Bailard’s team of investment professionals is launching this fund to access a significant and actionable opportunity for investors and believes it will also provide societal benefits by creating more affordable housing options for Americans who need them.”
Sargent added that by increasing access to high-quality and moderately priced apartments is even more important as rising mortgage rates are hampering first-time home buyers.
The new fund is targeting what the firm describes as ‘ABCD’ markets. Those are defined as – affordability, business-friendly environment, college education attainment, and demographic strength and excellent growth metrics.
“Through the team’s ground-up multifamily developments executed to date, we have seen the returns this strategy can provide our investors, along with the strong demand for this type of development in ‘ABCD’ markets across the nation,” said Tess Gruenstein, senior vice president of Acquisitions & Portfolio Management at Bailard. “This new fund leverages our existing expertise, giving our investors the opportunity for increased exposure to the asset class in a different risk profile than our Core fund.”
