Waterton Closes $1.7B Multifamily Value Add Real Estate Fund

Chicago-based Waterton announced the final close of Waterton Residential Property Venture XV, L.P. with $1.73 billion of equity commitments from a group of global institutional investors. The capital raise was led by Waterton’s in-house investor relations team, and Kirkland & Ellis LLP served as legal counsel.

“We expect to see significant opportunities in the multifamily sector as a result of the current, interest-rate driven disruption and the near-term oversupply in certain markets with healthy longer-term fundamentals,” said David Schwartz, chairman and CEO of Waterton. “This fund represents a strong conviction in a sector and a strategy we’ve been executing for almost 30 years, and a unique cycle-specific opportunity to generate additional alpha in the current market environment.”

Waterton held the first close for Venture XV in December 2022 and selectively pursued investments through 2023. The first deployment was a 346-unit building in the Chicago Loop area. Subsequent acquisitions include a transit-oriented property 35 minutes from midtown Manhattan and a Seattle-adjacent, garden-style community in addition to over $100 million in credit-focused investments, including both mezzanine and securitized debt. Venture XV will target distressed opportunities as well as traditional value add properties.