US asset manager Excelsa raises $153m for second multifamily fund

Fund targets family offices and high net worth investors from the Middle East and Gulf countries

Excelsa acquired Fox Hunt Farms with 276 units in Charlotte city, North Carolina, in December. Photo: Excelsa

Excelsa, a US-based asset manager and real estate private equity firm, has raised $153 million for its second multifamily fund from investors including those from the Middle East and Gulf countries.

The fund-raising, which began in January, reached its target of $150m by the end of March and targeted family offices and high-net-worth investors, Excelsa said in a statement on Wednesday, without disclosing details and names of the investors.

Excelsa, which began investing in multifamily properties in 2009, has acquired more than $420m in the US real estate properties through direct investments and through its first multifamily-focused fund Excelsa US Real Estate I.

The firm's portfolio includes 2,500 multifamily units, as well as office properties and land.

“The performance of our first fund has been exceptional with very strong yields distributed quarterly and a significant capital appreciation that we are starting to materialise through several exciting exits in the pipeline,” Fadi Majdalani, managing partner of Excelsa, said.

“We are honoured that all of our Fund I investors and co-investors have trusted us by joining our second fund and increasing their commitments to Excelsa.”

The US real estate market is booming, with revenue from the sector projected to reach $371 billion this year. It is expected to increase at an annual growth rate of 3.6 per cent until 2025, according to Statista.

Excelsa said its new fund will focus on multifamily properties across several states in the US.

It has already deployed $27m in equity after it acquired Fox Hunt Farms (276 units in Charlotte city in North Carolina) in December and Coventry Green (256 units in Charleston city in South Carolina) in February. These acquisitions occurred during a pre-launch phase and through bridge loans from the investors, Excelsa said.

“Our fund-raising success highlights the strong appetite for multifamily investments from the Middle East and Gulf states,” Khalil Hibri, head of business development at Excelsa, said.

“Our investors seek stable yields and a strong hedge against inflation which US multifamily delivers. We look forward to doing more exciting real estate deals.”

Updated: May 11, 2022, 2:52 PM