Chicago-based real estate firm RUME USA has launched an investment fund to raise capital for multifamily assets in strategic markets across the nation. The RUME Capital Income and Growth Fund I is targeting $50 million to $75 million for multifamily projects beginning in 2020 through 2023.
RUME anticipates investing the proceeds in multifamily communities located in strategic metropolitan statistical areas that have been among the most resilient asset classes in real estate. According to the firm, it will be looking for opportunities in Florida and Georgia in the Southeast; Illinois, Indiana, Kentucky, Ohio, and Wisconsin in the Midwest; and Arizona on the West Coast.
“Our success is based on RUME’s fully integrated platform, which allows us to manage all aspects of our real estate portfolio as we don’t outsource any critical component of the process,” said D. Nathan Reichard, a longtime real estate entrepreneur and principal at RUME. “By owning and managing all of our projects, a foundation is built that s integral to our ongoing commitment to process, innovation by technology and organizational culture. Currently, we see great opportunities in the multifamily sector, even amidst COVID-19. Our goal in launching this fund is to allow our investors to capitalize on the multifamily asset class with what we believe will be extremely attractive yields.”
According to the vertically integrated real estate investment firm, the fund will leverage RUME’s Community Occupied Rapid Renovation (CORR) strategy, which utilizes a process that enables the firm to renovate up to four units in a single day at the same time as improvements to the exterior and amenity areas. Since the firm’s founding in 2010, it has acquired 23 multifamily communities with more than 4,500 units.
“The need is clear, and we believe our process can provide consistent value for our investors,” added Carl Schirtzinger, a principal at RUME. “We are excited to apply our CORR process and expertise to the fund’s investments.”
