Multifamily developer Thompson Thrift has sold the last property in its Watermark 3G Multifamily Development Fund, achieving a 34.5% internal rate of return and a 2.16 equity multiple.
Watermark 3G met its funding goal of $105 million in January 2020, deploying capital for six Class A multifamily developments in Alabama, Arizona, Colorado, Michigan, and Missouri. It sold the first three assets in the second half of 2022 and the fourth in 2023. The remaining two properties were sold in July and October.
“We’re incredibly proud of the outstanding performance of our 2020 fund and grateful for the dedicated team and partnerships that made this success possible,” said CEO Paul Thrift. “These results highlight the strength of our data-driven market selection, disciplined site criteria, and unwavering commitment to excellence.”
Carrie Thrift LaFay, vice president of equity capital markets, added it’s a priority for the firm to be good stewards for its investment partners. “We are pleased to have delivered excellent returns for our partners,” she said. “Our 2020 fund enabled us to launch excellent projects in areas where we identified strong opportunities, leading to a highly successful conclusion.”
Thompson Thrift has raised and deployed over $1.5 billion in equity capital and has developed over 85 multifamily communities in suburban locales nationwide since adding the business unit in 2008. It is raising equity for its seventh multi-project development partnership, Thompson Thrift 2025 Multifamily Development. This offering aims to raise $230 million in total capital commitments for the ground-up development of multifamily communities in high-growth markets.
