Major investor backing targets apartment properties in need of upgrades
Carmel Partners has successfully raised $1.35 billion for its latest multifamily investment fund, marking the largest capital raise in the sector since 2022. The funding reflects strong investor interest in acquiring and upgrading underperforming apartment properties.
The closing of Carmel Partners Investment Fund IX comes at a time when a high-profile acquisition in Boston has helped redefine the firm’s expectations for large urban investments, despite challenges such as rising interest rates and limited capital availability.
The San Francisco-based real estate firm stated that Fund IX, which focuses on value-add opportunities, has already acquired nine operating properties and is actively investing in high-demand U.S. markets with significant barriers to entry. The fund has attracted a diverse group of investors, including U.S. and international pension funds, endowments, foundations, family offices, and high-net-worth individuals.
One notable investor is the School Employees Retirement System of Ohio, which has committed up to $75 million to the fund, according to state records.
Since launching its fund platform in 2003, Carmel Partners has raised more than $8.5 billion. The firm focuses on increasing property value through renovations, operational improvements, and enhanced management strategies. Its primary targets include supply-constrained markets such as Boston, New York, Washington, Seattle, and key regions across California.
Carmel Partners CEO Ron Zeff stated that Fund IX already has a strong portfolio foundation, with $477 million in committed equity. He added that the firm sees the current market as one of the most attractive opportunities for multifamily investment in nearly three decades.
In 2025, the fund acquired AVA Theater District, a 398-unit high-rise apartment building in downtown Boston, for $212 million. The property was later rebranded as Luka on the Common and represented the largest multifamily transaction in the city in over a year at the time.
Source: Original reporting by Mark Heschmeyer, CoStar News.
