Bridge Investment Group, based in Salt Lake City, recently unveiled plans for investing $4.5 billion of equity into its multifamily, debt, and Opportunity Zone (OZ) strategies over the next three years. During 2019, Bridge raised $3.7 billion of new capital and deployed over $2 billion of equity across six specialized investment verticals.
The new initiatives, which pick up where the old ones ended, will be broken into three buckets. Multifamily will get $1.6 billion of equity to develop or acquire assets in the value-add space over the next two years. Debt, in the forms of first mortgage, floating-rate loans, and Freddie Mac K-Series subordinated tranches, are teed up for $1.625 billion. OZ investments are pegged at $950 million that will pursue 20 development projects aggregating $2.2 billion of value in 2019.
In the multifamily arena, the company’s approach to value-add includes a mix of transforming unit interiors and common areas, increasing tenant satisfaction, and adding on-site community programming.
“Bridge has seen strong demand from the ‘triple play’ of opportunity: millennials, seniors, and immigrants,” said Jonathan Slager, chief investment officer for the Bridge Multifamily Strategy and co-CEO of Bridge Investment Group. “New supply of Class B multifamily is severely constrained, and occupancy is projected to remain high with steady rental rate increases.”
The debt investment prong is designed as an all-weather, income-focused strategy with a diversified portfolio focusing on a mix of first mortgage floating-rate loans and Freddie Mac K-Series subordinated tranches.
“Bridge Debt Strategies Fund Manager is focused on debt investments primarily against recession-resistant multifamily, office, and seniors housing assets with attention to liquid, high-growth secondary markets in the U.S.,” said James Chung, chief investment officer for the Bridge Debt Strategy.
The firm is casting a wide net to find opportunity in OZs. “Bridge has targeted development and redevelopment projects to invest in alongside high-quality development partners in qualified OZs throughout the country,” said David Coelho, chief investment officer for the Bridge Opportunity Zone Strategy. “Our team has deployed capital in 20 assets in 12 markets across the U.S. We are focused on creating transit-oriented work/live/play developments that are positive catalysts for job growth and urbanization in these communities.” The plan is to mimic the firm’s efforts last year in a search for more success this year.
“The U.S. real estate markets continue to offer exceptional investment opportunity due to the continuing strength of the U.S. economy, supply/demand imbalances, and demographic imperatives. Our significant real estate investment experience and ‘boots on the ground’ operating platforms allows Bridge to provide a fully integrated investment and property management process to identify attractive opportunities and proactively manage the assets to optimization,” said Robert Morse, chairman of Bridge Investment Group.
