Continental Properties Announces Closing of a $206 Million Multifamily Real Estate Income Fund
MILWAUKEE, May 5, 2021 / PRNewswire / – Continental Properties Company, Inc. (“Continental Properties”), a privately held, national developer, owner, and operator of apartment buildings and commercial real estate, has completed the Continental Properties Real Estate Income Fund II, LP (“) announced. Income Fund “). The Income Fund closed on April 20, 2021 with an overall increase of $ 206 million of the equity that was immediately used to acquire a $ 588 million Portfolio of 10 suburban multi-family communities developed by Continental Properties. This deal follows the closure of Continental Properties Real Estate Development Fund I, LP January 2021 With $ 180 million of equity and up to $ 700 million of the total construction costs and Continental Properties 2019 Real Estate Income Fund LP, which closed in November 2019 with equity of $ 158.5 million and an overall portfolio value of $ 598 million.
“Our Income Funds expand our development offering by giving investors the opportunity to create liquidity after our shared apartments are completed and fully let. Before creating Income Funds, we achieved this goal by selling some of our developments each year , however, many of our investors prefer to be long-term owners of the communities they invest in. The Income Funds allow them to do this while also achieving greater diversity in their real estate portfolio, “he said Jim Schloemer, Founder and Chairman of Continental Properties and Treasurer of the National Multifamily Housing Council.
“Interest in Income Fund II has exceeded our expectations and we are pleased to have a fully subscribed offering in a short period of time. Several elements of this fund have been well received by investors. First, the assets in our funds are new Built Suburban Communities These are strategically located to benefit from increased migration to the suburbs and the need for more accessible housing Second, investors will receive regular quarterly distributions starting at the end of the year June 2021 This is in contrast to multi-year investment periods typically associated with private equity and real estate funds. In Continental’s income fund, investor capital is used immediately to acquire the property portfolio and generate profits from day one, “he explained And Minahan, President and COO of Continental Properties. “Ultimately, we were able to benefit from low interest rates and secure long-term interest debt that will help increase bond yields and overall returns for investors over the life of the fund. The structure also provided a more tax-efficient investment vehicle structure for our investors.”
“We are excited about the closure of our third real estate fund in the last 17 months and assume that we will continue the Income Fund series with another offering in the second half of the year. We are also investing capital in the development of Continental. We assume that out that later this year we will be able to market the second fund in the series later this year or early 2022, “he commented Alex Wagner, Director of Investor Relations. “We are pleased about the opportunities that we see in multi-family development, the interest shown by our new and existing investors in our offers and are grateful for the continued trust that our investors have placed in us.” For more information, please contact Continental’s Investor Relations team at (262) 502-5500 or [email protected].
Information on Continental properties
Continental Properties is a Wisconsin-based national developer and operator of multi-family, retail and hotel properties. Since its inception in 1979, Continental Properties has developed over 90 shared apartments with more than 25,000 homes in 19 states. Continental Properties currently owns and manages 60 communities with more than 16,200 homes in 16 states. For more information on Continental Properties, please visit https://www.cproperties.com.
Media inquiries
Continental Properties Company, Inc. (262) 502-5500 [email protected]
This press release is not an offer to sell or the solicitation of an offer to buy any securities. Such an offer or invitation to invest, if made, will only be made by means of a Private Placement Memorandum (PPM). This version excludes material information listed in the PPM including, but not limited to, risk factors. Investors should elect to invest solely on the basis of the information in the PPM and other applicable offering documents. This press release may contain forward-looking statements that may contain projections and projections that are inherently subject to risks and uncertainties that could cause actual results to differ materially from those projected. Continental Properties does not offer any investment, legal or tax advice here. Investors should consult a financial or tax advisor on such matters. All investments involve risk, including the potential for loss of the entire investment. Securities offered through Growth Capital Services (GCS), member FINRA / SIPC 582 Market St. Suite 300 San Francisco, CA. 94104.
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