StoneRiver Company is pleased to announce the initial equity closing of StoneRiver Investment Fund III (“Fund III”). StoneRiver raised $81.8 million in capital commitments from institutional investors, family offices, and high net worth individuals and will continue raising capital for Fund III over the next 12-18 months with a goal of obtaining commitments totaling $200 million to $300 million during the fundraising period.
Fund III will acquire and develop garden-style multifamily communities throughout the Southeastern U.S. The fund will invest in value-add, core/core-plus and pricing-dislocation acquisitions as well as Class A developments in growing or stable markets with healthy employment and appealing demographics. StoneRiver Property Management, the firm’s in-house property management division, will manage Fund III’s portfolio.
”The Southeast continues to experience strong job and population growth that drives demand for quality apartment housing. Fund III is a continuation of our long-standing and proven strategy, and we look forward to creating value for our investors through our diligent underwriting and hands-on management.
Joseph WeldenStoneRiver’s President & Chief Investment Officer
On March 13, Fund III closed its acquisition of 198 Milltown Apartments, a 288-unit community in Burlington, North Carolina, and the fund’s first investment. Conveniently located between Greensboro and Raleigh/Durham, 198 Milltown’s submarket offers favorable demographics for multifamily investment, including a diverse employment base and growing population. The area should also benefit from the future economic impact projected for the Carolina Core, a 150+ mile swath of central North Carolina anchored by Greensboro, Winston-Salem, High Point, and Fayetteville.
“We are confident in 198 Milltown’s strategic location along the path of growth in the Carolina Core and easily commutable to both Greensboro and Raleigh-Durham. The asset has a history of strong performance, and we were able to assume attractive existing debt on the property, which benefits the economics of the acquisition. Considering these factors as well as the limited supply in Burlington, we believe 198 Milltown will be a successful investment for StoneRiver and our investors,” said Donald Gambril, StoneRiver’s Vice President of Investments.
