Dallas-based Lion Real Estate Group will continue to focus on its strategy of acquiring value-add multifamily assets across the Sun Belt with the closing of its latest fund, LREG Multifamily II, at over $200 million. The fund was raised from a combination of family offices, high-net-worth investors, and the real estate investment and asset management firm’s capital.
“We are extremely pleased to have closed our latest fund,” said Jeff Weller, co-founder and managing principal. “This is an opportune time for a firm of our size to be buying multifamily assets, which can be a great source of risk-adjusted returns and also provide tax efficiencies for our LP base. Our ability to be nimble in this uncertain market is precisely why we have been able to already allocate 60% of the new fund into assets that fit our investment criteria.”
This fund’s close follows Marble Partners Fund I, which acquired over $500 million in 15 multifamily communities with over 3,500 units. Over the past three years, the firm has increased employee head count by 30% and value of assets under management by 30%.
Lion Real Estate Group, which was founded in 2007, cites favorable multifamily market conditions for its recent activity.
“The macroeconomic factors of rising interest rates and inflation that are currently playing out in the U.S. mean that we are seeing, in cases, a 20% discount in our target assets,” said co-founder and managing principal Mory Barak. “The overall health of the sector is very strong, with higher occupancy rates and lower rent volatility than other real estate classes. We feel very well positioned to continue executing on the strategy that has served us and our investors well for over 15 years.”
The firm has acquired over $1.2 billion in assets comprised of 107 multifamily communities with over 11,000 units in 10 states since its inception. Its current portfolio of 6,510 multifamily units and two office buildings focuses on the strong Sun Belt markets of Atlanta; Austin, Texas; Dallas; Denver; and Nashville, Tennessee.
