Buckingham Multifamily Fund 2

$215M
50%
8
2402

Buckingham Multifamily Fund 2, LP ("BMF 2") held its final closing in November 2021 with aggregate committed capital of $215 million. Continuing on the strategy and success of the predecessor fund, Buckingham Multifamily Fund 1, BMF 2 will acquire, own, and operate institutional quality value-add suburban multifamily residential properties in vibrant, yield-oriented, secondary markets in the Midwest and Southeast U.S. BMF 2 will be leveraging Buckingham's vertically integrated real estate platform to increase operational efficiency. Additional closings for investor capital commitments are expected to be held through 2021. Please contact us here for more information on the BMF 2 offering.

Strategy

Focus on delivering strong returns through value-add capital expenditures including renovations tailored to maximize rent premiums.

Compared to gateway markets and national averages, the Fund invests in markets with superior job growth and rent-to-income ratios. Targeted suburban garden-style multifamily investment has provided superior recent returns and comparable twenty-year returns compared to urban products, with markedly lower volatility. Performance outcomes are consistent with the increase in the market for workforce households and the increase in urban core deliveries since 2012.

Target Markets

  • Vibrant secondary markets in the Midwest and Southeast U.S.
  • Attractive job growth and supply / demand dynamics
  • Significantly lower rent to income ratios than gateway markets
  • Target 14% - 16% gross IRR

Target Assets

  • Middle-income focused suburban garden-style and mixed use
  • Desirable submarkets with favorable demographics and high barriers to entry
  • Accessibility to nearby interstates, retail, employment, and good schools
  • Post-renovation rents remain below 25% rent to income ratio
  • All-in costs below replacement costs