HOUSTON – (Realty News Report) – Ivanhoé Cambridge and Mount Auburn Multifamily have formed a joint venture to provide preferred equity for ground-up multifamily developments across the United States, including major markets in Texas.
The joint venture is designed to help multifamily developers complete their capital structures more efficiently and accelerate the delivery of new housing at a time when many cities are experiencing shortages.
The Texas Triangle – HOU, DAL, AUS, SAT
The partnership builds on Mount Auburn’s investment strategy that targets millennial migration to secondary markets characterized by low costs, business-friendly environments, strong population growth, and affordable living. Primary target markets for the joint venture include Atlanta, Austin, Charlotte, Columbus, Dallas/Fort Worth, Denver, Houston, Indianapolis, Jacksonville, Louisville, Nashville, Orlando, Phoenix, Raleigh, Salt Lake City, San Antonio, Tampa, and suburbs of Washington, D.C.
Ivanhoé Cambridge Changing Houston Skyline
Ivanhoé Cambridge is already active in Houston real estate. Partnering with Hines, the firm is developing Texas Tower, a 47-story, 1 million-square-foot office tower in downtown Houston on Texas Avenue. Designed by Pelli Clarke Pelli, the tower is expected to open by year-end on the former site of the Houston Chronicle.
Ivanhoé Cambridge has also been expanding its U.S. residential footprint and now holds more than 40,000 multifamily units. The firm intends to continue growing this asset class through targeted partnerships and an increased pipeline of development projects to address evolving community needs and demographic trends.
Mount Auburn, managing roughly $2 billion in assets and more than 10,000 units nationwide, plans to leverage its existing relationships and form new alliances with top-tier regional developers and owners to execute the joint venture’s strategy.
Growth in Secondary Markets
“Partnering with Ivanhoé Cambridge is a transformational relationship that allows Mount Auburn to capitalize on the explosive demand growth in secondary markets that we have seen for over a decade,” said Matt Pavlovich, Executive Vice President of Mount Auburn. “Ivanhoé Cambridge is a sophisticated, long-term oriented partner and we look forward to assembling a distinguished portfolio together. This is only the beginning for our partnership.”
“U.S. multifamily continues to offer compelling returns for Ivanhoé Cambridge, and the partnership with Mount Auburn provides an opportunity to diversify our U.S. multifamily portfolio into markets well-positioned for durable growth,” said Charles-Antoine Lussier, Senior Vice President at Ivanhoé Cambridge. “We are pleased to partner with Mount Auburn on this joint venture and view this as a first step toward expanding our collaboration in the future.”
June 28, 2021 Realty News Report. Copyright 2021.
For additional context on Texas real estate, consult the book Houston 2020: America’s Boom Town – An Extreme Close Up by Ralph Bivins. Available in print and ebook formats.
File: Texas Triangle Markets Targeted
Photo courtesy: Mount Auburn Multifamily