Apr 3, 2024

Continental Properties Closes on Real Estate Opportunities Fund



Opportunities Fund Closing

MILWAUKEE, Wis.— Continental Properties Company, Inc. (“Continental Properties”) a privately held national multifamily and commercial real estate developer, owner, and operator has announced the closing of its eighth commingled real estate fund, Continental Properties Real Estate Opportunities Fund I, L.P. The Fund recently held its final closing with total capital of $105 million which will be utilized to acquire predominantly multifamily apartment communities in markets where Continental currently operates.

James Schloemer, Co-Founder and CEO of Continental Properties and Chairman of the National Multifamily Housing Council (NMHC) stated, “The Opportunities Fund represents a new offering from Continental Properties and is an attractive complement to our other investment funds. Launched on the success of previous funds including our Income Funds and Development Funds, we created the Opportunities Fund to take advantage of the current dislocation in the real estate market. There has been a lot of news over the last several months highlighting rising interest rates and the resulting distress in capital markets, particularly in real estate. We believe the weaker capital structure (overreliance on floating rate debt) of many recent real estate projects offers interesting and potentially rewarding acquisition opportunities for well-capitalized general partner operators and investors.”

Continental Properties has a long history in multifamily rental housing, primarily as a developer and operator of its branded communities – Springs Apartments, Authentix Apartments, and Avanterra Homes. “We remain steadfastly focused on multifamily real estate because we view the long-term demographics and rising cost of home ownership as being very favorable to the continued demand for rental housing,” commented Ed Madell, CFO. “Continental sees the current market disruption and debt-related distress as an opportune time to acquire quality multifamily properties located in existing Continental markets at significant discounts to what it would cost to build today. This fund represents a new opportunity for our team and our investors to capitalize on the current volatility and uncertain market conditions.”

Despite murky conditions, volatility in interest rates, and slower activity in the capital markets, Continental’s team was able to raise the capital in a short timeframe, noted Dan Minahan, President, and COO of Continental Properties. “Our investors continue to rely on us to maintain our strict underwriting, act as a steward of their capital, and leverage our 45-year experience to deliver the results they have come to expect.”

Continental Properties has raised nearly $1.5 billion since the end of 2019, showcasing strong investor confidence in the company's strategic initiatives and track record. Alex Wagner, Vice President of Investor Relations, expressed optimism about future prospects, stating, "We are encouraged by the interest in the Opportunities Fund, and we believe investor interest will continue for future investment offerings, including our upcoming Development Fund III, which we expect to launch early in the second quarter. This fund, similar to the first two development funds, will be utilized to invest in ground-up, suburban, market-rate developments across the country."

For more information or investment inquiries, please visit our website here.

About Continental Properties     

Continental Properties is a national developer and operator of rental communities, retail, and hospitality properties. Since its inception in 1979, Continental Properties has developed over 129 apartment communities encompassing more than 34,000 apartment homes in 19 states.   

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