Henry Cisneros, former HUD Secretary and San Antonio mayor, and current CityView Executive chairman, is looking toward his home region with his latest fund—a $165 million vehicle fueled by three pension funds, according to Bloomberg.
CityView will use the fund to acquire and improve existing multifamily buildings in Texas and Colorado, and Arizona. Bloomberg reported that Dallas-based Lincoln Property Co., will manage for CityView, while the Public School Teachers’ Pension and Retirement Fund of Chicago, the Teachers’ Retirement System of the State of Illinois and the Teacher Retirement System of Texas (all first-time CityView investors) will invest in the fund, according to Bloomberg.
With rents rising in these three states (Arizona has seen recent job growth and Texas and Colorado have strong energy sectors), the rehab play makes sense in these markets. With limited supply over the past couple of years, there’s room to improve the quality of existing supply and capture renters. Could we start seeing more rehab funds around the country?