A Baltimore-based real estate investment and management company has closed a $146 million private equity fund targeting multifamily acquisitions in southeastern U.S. markets.

Continental Realty Corp., in partnership with investment management firm Brown Advisory, executed five real estate funds focused on multifamily and retail investments totaling approximately $850 million in equity commitments since 2012, according to a press release.

The new, open-ended fund was formed to create a long-term vehicle for core multifamily investment and will acquire a diversified, high-quality portfolio of income-generating multifamily properties located in high-growth markets, the release said.

“The Core Multifamily Fund provides our team ongoing capacity to acquire newly constructed Class A assets in the Southeast region of the country where we have been investing since 1996,” said JM Schapiro, CEO of CRC. “Given our deep understanding of the Southeast markets and current market conditions, especially the job and population growth in the Southeast, our vertically integrated team believes this is the optimal time to invest in a core multifamily strategy for long-term holds.”

Target characteristics for multifamily assets in this fund include Class A garden and mid-rise communities built within the past four years, with a focus on stabilized or near-stabilized opportunities. CRC will target well-constructed properties with top-quality finishes and amenities throughout suburban and urban submarkets, the release said.

“Multifamily real estate performance correlates positively with population and job growth, and by investing in high-growth markets, properties acquired by this fund could benefit from submarket growth that is stronger than the national average,” said Ari Abramson, CRC’s vice president of acquisitions. “We believe multifamily properties benefit from attractive long-term supply/demand dynamics, and current multifamily fundamentals are strong.”

CRC owns and manages a portfolio of over 9,000 apartment homes, as well as retail centers and other commercial properties consisting of more than 6 million square feet of commercial space across 10 states, with a portfolio value exceeding $3.2 billion. Since 2017, CRC has acquired 3,200 multifamily units. 

This includes more than 1,000 units of newly developed and best-in-class properties through five off-market transactions located in the Carolinas. These properties include:

• Edison Lofts and St. Mary’s Square in Raleigh, North Carolina.
• The Flats at Ballantyne and Park & Kingston in Charlotte, North Carolina.
• Central Island Square in Charleston, South Carolina.

CRC said it expects to buy similar properties through the new initiative.