CHARLESTON, S.C.
--News Direct--
Ballast Rock, the diversified investment management firm, today announced 2024 year-end performance of Sunbelt Multifamily Funds I and II.
Ballast Rock launched Sunbelt Multifamily Fund I (SB1) in 2019 and between February 2019 and January 2021 acquired nine properties totaling 1,110 apartment units for $63,630,000.
SB1 began dispositions in early 2022, generating gross proceeds of $70,550,000 from the first five properties sold. The 689 apartment units involved were acquired at an average cost of $52,387 per unit and sold at an average cost of $102,395 per unit. Thus far SB1 has made a total of $50,768,242 of investor distributions on $32,000,000 of equity invested in the fund. Ballast Rock anticipates exiting the remaining four assets in SB1 opportunistically over the next 12 to 18 months.
Sunbelt Multifamily Fund II (SB2), which launched in 2021, closed the acquisition of its final asset in early 2023, acquiring nine properties totaling 1,049 units for $105,363,000.
SB2 generated cash from operations for its investors of 7% in 2024. The fund maintained an average capitalization rate of 7.0% for the year, with 6.85% in the first half and 7.15% in the second half of 2024. SB2 paid 7.5% from income to investors in 2021, 7.5% from income in 2022, 7.0% from income in 2023, and now will have paid 7% to investors in 2024 from income.
Thus far SB2 has made a total of $10,500,00 of investor distributions on approximately $52,500,000 of equity invested in the fund. SB2 made its first property disposition in February 2025 and anticipates exiting its remaining assets opportunistically over the next 24 months.
"The environment for multifamily real estate remained challenging during 2024," said Thomas Carroll, Chief Executive Officer of Ballast Rock. "We hear from our investors about other private equity real estate funds that are not paying distributions and, in some cases, even making additional capital calls from existing investors. Given that backdrop, we were pleased that our focus, diligence and discipline has delivered results for our investors. This performance is a shared success, as all our principals invest our own capital alongside our investors, aligning our interests, and delivering safe, clean, and affordable homes for residents in our communities."
After almost two years of actively underwriting workforce multifamily assets in the southeast, Ballast Rock launched Sunbelt Multifamily III (SB3) with its first acquisition in July 2024. Ballast Rock's Atlanta-based real estate team continues to underwrite and diligence properties to identify the next acquisition that meets SB3's strict qualitative and quantitative investing standards. SB3 target size is $100 million in equity.
"We believe that our focus on workforce housing in the Southeast is the right strategy, and we anticipate that there will be excellent opportunities to acquire the right properties at attractive valuations in the coming months," said Ian Garcia, Chief Operating Officer of Ballast Rock Real Estate. "We will continue to actively underwrite assets, but we will never sacrifice our diligence or discipline."
About Ballast Rock Group
Ballast Rock Group is an integrated investment management company specializing in delivering risk-adjusted returns, accurate, and timely advice, high quality frequent reporting, and direct access to management. Ballast Rock Group operates Ballast Rock Asset Management, Ballast Rock Private Wealth, and Ballast Rock Capital. Ballast Rock Asset Management comprises Ballast Rock Real Estate, which includes the firm's Sunbelt multifamily real estate funds, and Ballast Rock Ventures, comprising venture capital and private equity teams. Ballast Rock Private Wealth is a registered investment advisor, with a focus on alternative strategies. Ballast Rock Capital is a FINRA-registered broker-dealer. Ballast Rock is committed to being a driver of positive change. The diversity of our team members brings valuable new perspectives to our industry for the benefit of our stakeholders and the broader community.
Investment Disclosure
The information contained in this press release has been prepared by Ballast Rock Holdings LLC ("Ballast Rock") without reference to any particular reader's investment requirements or financial situation. Potential investors are encouraged to consult with professional tax, legal, and financial advisors before making any investment into a private offering of securities. An investment in private securities would be speculative and would involve a high degree of risk. Investors must be prepared to bear the economic risk of such an investment for an indefinite period of time and be able to withstand a total loss of their investment. Please carefully consider the investment objectives, risks, transaction costs, and other expenses related to an investment prior to deciding to invest. Ballast Rock Capital LLC ("BRC"), MEMBER: FINRA / SIPC. BRC's registered head office is 460 King Street, Suite 200, Charleston, SC, 29403. Tel: 800-204-2513. To check background information about BRC and its representatives, visit FINRA's BrokerCheck. Please see important disclosure information in our Form CRS.
Contact Details
For Ballast Rock
Lisa Aldape, Vocatus
Company Website
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