Multi Family Fund Lines Up Equity

December 6, 2017|

A startup investment manager has completed raising $100 million of equity for its debut fund. The Houston shop, Marble Capital, is shooting for a 13-14% return by providing preferred equity to developers of multi­family properties nationwide. The operator aims to work with well-respected developers in top markets. It generally supplies $5 million to $15 million of capital per investment, in the portion of the capital stack between the construction loan and the developer's own equity. For example, if a developer arranges a construction loan covering 60% of a project's cost but can't line up the remaining 40% as common equity, Marble might kick in 25% of the capital, reducing the developer's common-equity commitment to 15%. Marble seeks a preferred return of 13- 15%...