Ballast Rock, a diversified investment management firm, reported consistent performance for its Sunbelt Multifamily Funds I and II in 2024, highlighting successful property investments and investor returns in a complex real estate market.
Sunbelt Multifamily Fund I (SB1), launched in 2019, has generated substantial returns by acquiring and selling nine properties totaling 1,110 apartment units. The fund has already sold five properties, achieving an average sale price of $102,395 per unit compared to an initial acquisition cost of $52,387 per unit. To date, SB1 has distributed $50,768,242 to investors on an initial equity investment of $32,000,000.
Sunbelt Multifamily Fund II (SB2) maintained steady performance in 2024, generating 7% cash returns from operations and maintaining a consistent capitalization rate around 7.0%. The fund has invested in nine properties comprising 1,049 units and has distributed $10,500,000 to investors from an approximate $52,500,000 equity investment.
Ballast Rock's leadership emphasized the firm's disciplined approach during a challenging real estate environment. CEO Thomas Carroll noted that while many private equity real estate funds struggle with distributions, Ballast Rock has maintained investor payouts by aligning principal investments with investor interests.
The company has also launched Sunbelt Multifamily Fund III (SB3) in July 2024, targeting $100 million in equity and continuing its strategic focus on workforce housing in the Southeast. COO Ian Garcia highlighted the firm's commitment to rigorous asset evaluation and maintaining high investment standards.
These fund performances demonstrate Ballast Rock's strategic approach to multifamily real estate investments, particularly in the Sunbelt region, showcasing resilience and consistent returns amid market uncertainties.
