The Real Deal Miami

Atlantic | Pacific and Blue Arch raise $120M for multifamily buying spree

Fund's total buying power is valued at about $350 million

June 23, 2016 06:00PM

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Aerial view of Little Havana (Credit: B137) (Inset from left: Howard Cohen, CEO of Atlantic | Pacific Cos., and Gil Hermon, managing member of Blue Arch Advisors)

Aerial view of Little Havana (Credit: B137) (Inset from left: Howard Cohen, CEO of Atlantic | Pacific Cos., and Gil Hermon, managing member of Blue Arch Advisors)

Fresh off a round of funding with $120 million in commitments, Altantic | Pacific Cos. and Blue Arch Advisors have announced they’re launching a multifamily investment campaign in the Southeastern and Southwestern U.S.

The firms announced Thursday that they’ve just closed their co-sponsored fund, dubbed Blue Atlantic Partners, which will focus on acquiring existing rental communities in affluent suburbs of major cities.

Institutional investors and high-net-worth individuals, both domestic and international, contributed to the $120 million that now makes up the fund, Atlantic and Blue Arch said in a release. Along with leverage from lenders, the two value their fund’s buying power at roughly $350 million.

Blue Atlantic Partners plans on buying out these communities and having Atlantic | Pacific manage them, hoping to increase their value through renovation programs.

This isn’t the first time Atlantic | Pacific and Blue Arch have partnered up for a deal like this one. Early last year, the two paid $200 million for a portfolio of six Class A apartment communities in both Georgia and Texas, boosting their portfolio size by more than 1,900 units in a single move.

In South Florida, Bay Harbor Islands-based Atlantic | Pacific recently broke ground on a new affordable housing community in Fort Lauderdale dubbed Northwest Gardens V.

Blue Arch, also based in Bay Harbor Islands, is an investment company that mainly keeps its focus in the Southeastern U.S. The company has “deployed” $3 billion worth of capital in properties since 2008, according to its website, with its preferred assets being either distressed or in need of some rehabilitation. — Sean Stewart-Muniz

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