Invesco, Bozzuto Join Forces on $1B Multifamily Venture

Trillion-dollar investment giant Invesco is teaming up with a notable commercial real estate player to make multifamily deals along the nation’s eastern seaboard.

Invesco Real Estate and Maryland-based Bozzuto announced a $330 million investment platform for multifamily assets, Bisnow reported. The investment capacity of the joint venture is $1 billion.

Specifics about what type of assets the venture will target weren’t disclosed, but one deal has already closed. The venture acquired the 220-unit Enders Place at Baldwin Park in Orlando; TA Realty sold the community for $73.6 million, according to Growth Spotter. The venture plans to upgrade units to increase value.

“This venture is anticipated to capitalize on recovering market fundamentals focusing on assets possessing multiple value creation levers,” Invesco Real Estate managing director Greg Kraus said in a statement.

Bozzuto president Toby Bozzuto added that the venture “provides the financial flexibility and strategic alignment necessary to navigate evolving market conditions.”

Those evolving market conditions — most notably, a slowdown in the apartment construction pipeline that boomed during the pandemic — have attracted a number of aggressive investors in the sector. Supply is tightening as fewer than 500,000 units were in the pipeline at the end of June for the first time in eight years, according to Cushman & Wakefield.

Invesco, a subsidiary of the larger $1.5 trillion asset manager of the same name, manages $85 billion in assets across the United States, Europe and Asia. Last year, Invesco sold a Maryland multifamily property to AIR Communities for $129.8 million, a 37 percent discount from the then-state record $207 million Invesco paid for the property in 2016.

Bozzuto, meanwhile, manages more than 130,000 multifamily units across its portfolio. The management company recently made news when it took Rep. Cory Mills to court, looking to evict the congressional representative from his luxury penthouse apartment in Southwest Washington, D.C.

Mills allegedly owes more than $85,000 in unpaid rent, according to the complaint.

— Holden Walter-Warner