Ballast Rock, the diversified investment management firm, today announced it has launched Sunbelt Multifamily Fund III, the third private equity real estate fund in its Sunbelt series.
Ballast Rock is targeting a raise of $100 million for the fund, which, like the previous Sunbelt Funds, will focus on acquiring and renovating a diversified portfolio of workforce multifamily properties in the U.S. Southeast. Ballast Rock has identified and is performing due diligence on a value-add property that would represent the first acquisition for the new fund.
“The broader real estate market has experienced tremendous uncertainty, given the rise in interest rates and disruptions in the credit markets. The team have patiently been assessing the long-term impacts of these changes on our target markets and are excited to have found a potential first investment for SB3” said Thomas Carroll, Founder and Chief Executive Officer of Ballast Rock. “We have remained constructive on our core focus, which is workforce multifamily value-add, specifically in the Southeast.”
“Our team has diligently been underwriting deals since our last acquisition in early 2023 and has looked at close to 400 assets in that time,” said Ian Garcia, Chief Operating Officer and Portfolio Manager for the Sunbelt Funds. “We are extremely conservative on our underwriting and will only ever consider investing in a deal if we have a high degree of confidence that it is going to clear our stringent investment objectives.”
Prior Sunbelt Funds
Ballast Rock launched Sunbelt Multifamily Fund I (“SB1”) in 2019 and between February 2019 and January 2021 acquired nine properties totaling 1,110 apartment units for $63,630,000. SB1 began dispositions in early 2022, generating gross proceeds of $60,450,000 from the first four properties sold. The 593 apartment units involved were acquired at an average cost of $53,583 per unit and sold at an average cost of $101,939 per unit. Ballast Rock anticipates exiting the remaining five assets in SB1 opportunistically over the next 12 to 18 months.
Sunbelt Multifamily Fund II (“SB2”), launched in 2021 and between February 2021 and January 2023 acquired nine properties totaling $101,408,000, with 1,039 apartment units.
In April of 2023 Ballast Rock launched Ballast Rock Capital, its broker-dealer. Ballast Rock Capital is a member of the Financial Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC) and is registered with the Securities and Exchange Commission (SEC).
About Ballast Rock Group
Ballast Rock Group is an integrated investment management company specializing in delivering risk-adjusted returns, accurate, and timely advice, high quality frequent reporting, and direct access to management. Ballast Rock Group operates Ballast Rock Asset Management, Ballast Rock Private Wealth, and Ballast Rock Capital. Ballast Rock Asset Management comprises Ballast Rock Real Estate, which includes the firm’s Sunbelt multifamily real estate funds, and Ballast Rock Ventures, comprising venture capital and private equity teams. Ballast Rock Private Wealth is a registered investment advisor, with a focus on alternative strategies. Ballast Rock Capital is awaiting approval to become a FINRA-registered broker-dealer. Ballast Rock is committed to being a driver of positive change. The diversity of our team members brings valuable new perspectives to our industry for the benefit of our stakeholders and the broader community.
