NEW YORK & CHICAGO & SALT LAKE CITY–(BUSINESS WIRE)–Private real estate investment manager Highland Real Estate Partners announced today that it has held a first close of Highland SMF Opportunities II with $18m of LP commitments. The Fund is the second in the firm’s SMF Fund Series focused on acquiring multifamily assets that fall below the radar of larger institutional investors. Highland Real Estate Partners is continuing to raise capital for Fund II with a target of $25m and expects a final close to be held on April 1st, 2025.
Highland has already begun constructing the Fund’s portfolio, with two acquisitions located in Salt Lake City closing in Q4. The team is excited to implement value add initiatives to these assets to drive occupancy gains, grow net operating income, enhance asset quality and provide a higher quality of living to its residents.
Ben Frazer, Investment Partner & Co-Founder, said, “This fundraise positions Highland to continue executing on our strategy and take advantage of the dislocations we are seeing in the market today. It is an ideal time to lean into an attractive opportunity set driven by the unwinding of exuberance seen in the peak of the last cycle and favorable long-term fundamentals in the multifamily sector. We are grateful for the confidence and continued support of our investors and remain committed to delivering attractive absolute and risk-adjusted returns.”
Dylan Grigg, Operating Partner & Co-Founder, said, “We have established Highland as a best-in-class investor in and operator of SMF assets. As we have scaled the firm, we have created significant competitive advantages in the highly inefficient sub-institutional multifamily market. Our investments have benefitted from the vertical integration of property and asset management, achieving strong operating results across the portfolio. We look forward to continuing to deliver strong results for our investors in Fund II.”
The Fund’s first close will grow the Highland SMF portfolio to over $275 million in gross asset value, made possible by the firm’s 15-person team dedicated to acquiring & operating the firm’s assets. Highland’s vertically integrated property & asset management infrastructure differentiates our strategy vs. competitors that rely on 3rd party vendors to operate their properties.
About Highland
Highland Real Estate Partners is a vertically integrated manager of private real estate investments, focused on acquiring and operating SMF assets in select Midwest & Mountain West markets. Highland aims to consolidate SMF assets that fall below the radar of larger institutional investors and drive returns via exploiting inefficiencies and operating at scale in a fragmented landscape dominated by smaller, undercapitalized market participants. As of October 1st, Highland has approximately $225m in real estate under management (gross asset value), spanning over 1,000 apartments in the Chicagoland, Salt Lake City and Tucson markets. To learn more about Highland, visit www.highlandptrs.com.
