Milestone Group co-managing partner Jeffrey L. Goldberg, left, and COO Chris B. Bartlett [Photos: The Milestone Group]

The Milestone Group, a Dallas-based private equity real estate investment firm, announced the final close of its sixth discretionary equity vehicle, Milestone Real Estate Investors VI LP, at its hard cap of $1.1 billion.

“We’re grateful for the continued confidence and support of our investors, particularly given the dislocation in today’s capital markets,” Milestone COO Chris Bartlett said in a statement. “The strong demand for Fund VI underscores Milestone’s 20-year track record of delivering consistent, strong performance across market cycles. Fund VI is well-positioned to capitalize on what we view as an exceptional opportunity to acquire high-quality multifamily assets at attractive pricing, while continuing to execute our disciplined, risk-aware investment strategy.”

The fund was oversubscribed, which Milestone said reflected strong demand for its value-add investment strategies and historic performance despite “a challenging fundraising environment.”

Acquires and repositions multifamily communities

Fund VI continues Milestone’s flagship value-add investment strategy of acquiring and repositioning middle-market suburban multifamily communities in high-growth U.S. markets across the Sunbelt and Mid-Atlantic regions, the firm said. Building on its cycle-tested approach, the firm said Fund VI will target well-located, undercapitalized, and undermanaged properties that offer embedded growth opportunities.

“At Milestone, we take a solutions-oriented approach to transactions, with the objective of creating outcomes that deliver value for all stakeholders while positioning our funds for long-term success,” Jeffrey Goldberg, co-managing partner, said in a statement. “We collaborate closely with sellers to address their unique circumstances, leveraging creative structures such as recapitalizations, debt assumptions, entity purchases, portfolio acquisitions, and rescue capital to facilitate refinancings and optimize capital structures.”

Since its founding, Milestone has invested more than $9 billion across more than 90,000 multifamily units, delivering top quartile returns in all prior discretionary funds based on the most recently available Cambridge Private Real Estate Index and Benchmarks Statistics Report.

Fund VI already has closed on several investments, the firm said, including multifamily communities in South Florida, Northern Virginia, and Denver, each acquired “at a meaningful discount to replacement cost and supported by strong market fundamentals.”

Milestone said its investor base for Fund VI includes leading global institutions such as public and private pension funds, insurance companies, foundations, a sovereign wealth fund, family offices and ultra-high net worth investors.

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