MILWAUKEE, May 5th, 2021 – Continental Properties Company, Inc. (“Continental Properties”), a privately held, national multifamily and commercial real estate developer, owner, and operator has announced the closing of Continental Properties Real Estate Income Fund II, L.P. (“Income Fund”). The Income Fund closed on April 20, 2021 with a total raise of $206 million of equity which was immediately utilized to acquire a $588 million portfolio of 10 suburban multifamily communities developed by Continental Properties. This closing follows on the heels of Continental Properties Real Estate Development Fund I, L.P. which closed in January 2021 with $180 million of equity and up to $700 million of total construction costs and Continental Properties 2019 Real Estate Income Fund L.P. which closed in November 2019 with total equity of $158.5 million and a total portfolio value of $598 million.
“Our Income Funds enhance our development offerings by providing investors with the option to create liquidity after our apartment communities are completed and fully leased. Prior to creating income funds, we managed this objective by selling a portion of our developments each year, however, many of our investors prefer to be long-term owners of the communities in which they invest. The income funds allow them to accomplish that while achieving greater diversity in their real estate portfolio,” said Jim Schloemer, Founder and Chairman of Continental Properties and Treasurer of the National Multifamily Housing Council.
“The interest we received in Income Fund II surpassed our expectations, and we are pleased to have a fully subscribed offering in a short marketing period. Several elements of this Fund resonated with investors. First, the assets in our funds are newly constructed suburban communities which are strategically located to take advantage of increased migration to the suburbs and the need for more attainable housing. Secondly, investors will begin receiving regular quarterly distributions starting at the end of June 2021 which contrasts with multi-year investment periods typically associated with private equity and real estate funds. In Continental’s income funds, investor capital is immediately put to work to acquire the portfolio of properties and generate earnings from day one,” stated Dan Minahan, President and COO of Continental Properties. “Lastly, we were able to capitalize on low interest rates and lock in long-term interest-only debt which will help drive rising cash yields and total returns to investors over the life of the fund. The structure also provided a more tax-efficient investment vehicle for our investors.”
“We are thrilled with the closing of our third real estate fund in the last 17 months, and we expect to continue the Income Fund series of funds with another offering in the second half of this year. Also, as we deploy capital in Continental’s Development Fund throughout the year, we expect to be in a position to market the second fund in that series later this year or early in 2022,” commented Alex Wagner, Director of Investor Relations. “We are excited about the opportunities we are seeing in multifamily development, the interest level in our offerings from new and existing investors, and we are grateful for the continued trust that our investors place in us.” For additional information, please reach out to Continental’s Investor Relations Team at (262) 502-5500 or IR@cproperties.com
About Continental Properties
Continental Properties is a Wisconsin-based national developer and operator of multifamily communities, retail, and hospitality properties. Since its inception in 1979, Continental Properties has developed over 90 apartment communities encompassing more than 25,000 apartment homes in 19 states. Currently, Continental Properties owns and manages 60 communities comprised of over 16,200 homes in 16 states. For more information about Continental Properties, visit https://www.cproperties.com.
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This release is not an offer to sell or the solicitation of an offer to purchase securities. Any such offer or solicitation to invest, if made, will be made only by means of a Private Placement Memorandum (PPM). This release excludes material information detailed in the PPM, including, but not limited to risk factors. Investors should decide to invest based solely on the information provided in the PPM and other applicable offering documents. This release may include forward-looking statements, which can include forecasts and projections, which by their very nature, are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Continental Properties is not providing any investment, legal, or tax advice herein. Investors should speak to a financial or tax advisor for such matters. All investments involve risk, including the potential for loss of the entire principal amount investment. Securities offered through Growth Capital Services (GCS), Member FINRA/SIPC 582 Market St. Suite 300 San Francisco, CA 94104.