IMT Capital Closes Multi-Family Fund with $350M in Commitments

IMT Capital L.L.C. has completed its IMT Capital Fund II, giving the company $350 million in committed equity to play with in the pursuit of opportunities across the country.

September 13, 2011
By Barbra Murray, Contributing Editor

In the aftermath of the real estate industry’s panic a few years ago, investors continue to raise money to capitalize on the increasingly advantageous conditions in the multifamily market — and IMT Capital L.L.C. is among the latest. With the closing of IMT Capital Fund II L.L.P., the company now has $350 million in committed equity to play with in the pursuit of opportunities across the country.

IMT Capital will focus on major metropolitan markets, targeting value-add assets available in either one-off or portfolio purchase deals through Fund II. The real estate investment and management company, which will also consider infusing equity or debt for the recapitalization of properties, plans to boost the value and desirability of the apartment communities through renovations and repositionings, and increase occupancy levels by employing the company’s tried-and-true skills in leasing and management.

“IMT continues to believe that this phase of the economic cycle favors rental product over for-sale product, and positive apartment fundamentals should support the firm’s investment strategies for the foreseeable future,” Michael H. Browne, co-founder and managing director of IMT Capital, said.

Investors of all types are keen on the apartment market; Fund II attracted commitments from college endowments, foundations and pension funds.

The widespread faith in the apartment sector is certainly valid. “There is now a widely held belief that we could see significant rent increases over the next three years due to a combination of factors, including the firming of occupancy rates; the demographic bulge of renters and a million new annual household formations; the difficulty of qualifying for a single-family mortgage; a significant shift from a propensity to own to a propensity to rent; and the relatively low level of multifamily development,” commercial real estate services firm CB Richard Ellis concludes in a recent study. “The velocity with which the multi-housing markets have recovered has been stunning.”

The closing of Fund II comes four years after the final closing of on IMT Capital Fund I, which also wrapped up with $350 million in commitments in July 2007. As was the case with Fund II, Fund I lured large college endowments and foundations across the U.S. — and investment banks turned out as well.