Key Takeaways
- • Elevest Capital launches Fund 70 to acquire a 229-unit, 35-story high-rise apartment community in Downtown Dallas for $42 million, marking the firm's 70th acquisition with a record 6.4% going-in cap rate—the highest across all Elevest funds to date.
- • The property demonstrates strong operational stability: built in 2007, it has maintained 90%+ physical occupancy over the past decade and is currently 93% occupied with zero rental concessions offered in the past 12 months.
- • Fund structure targets an 8.0% preferred return, 15.6% projected IRR, and 2.01x projected equity multiple with a two-to-five-year hold period and projected 5.25% exit cap rate; $19.1 million in total equity raised with $200,000 minimum investment.
- • Monthly cash flow distributions anticipated to commence 60 to 90 days after closing, with 4.0% targeted average annual cash flow and an 85/15 LP/GP profit split.
Summary
Elevest Capital, a Scottsdale-based private equity firm specializing in passive multifamily real estate investing, announced the launch of Fund 70 on September 28, 2026, targeting acquisition of a 229-unit, 35-story high-rise apartment community located in an A+ Downtown Dallas location. The $42 million acquisition represents the firm's 70th fund deployment and carries a 6.4% going-in cap rate—the highest initial yield the firm has achieved across its entire fund portfolio, according to Adam Williams, Founder and CEO of Elevest Capital.
The underlying asset demonstrates strong operational fundamentals and historical stability. Constructed in 2007, the property has sustained occupancy rates exceeding 90% consistently over the past decade and currently operates at 93% occupancy. Notably, the property has maintained this occupancy without offering rental concessions over the past 12 months, indicating resilient tenant demand and pricing power in the Downtown Dallas market. Williams characterized the acquisition as aligning with the firm's core investment criteria: "a well-located, well-occupied property with a track record of stability," emphasizing that securing a 6.4% cap rate in a prime downtown location represents a rare market opportunity.
The fund structure reflects institutional-quality terms designed to balance cash flow generation with long-term appreciation potential. Elevest Capital raised approximately $19.1 million in total equity with an $200,000 minimum investment requirement. Target terms include an 8.0% preferred return to limited partners, a 15.6% projected internal rate of return, and a 2.01x projected equity multiple. The capital structure employs an 85/15 LP/GP profit-split arrangement. The anticipated hold period spans two to five years, with a projected 5.25% exit cap rate reflecting conservative assumptions for market conditions at disposition.
Monthly cash flow distributions are anticipated to commence within 60 to 90 days following closing, with a targeted 4.0% average annual cash flow yield on invested capital. The conservative exit cap rate of 5.25%—50 basis points below the entry yield—and the two-to-five-year holding window position the fund to capture both operational cash flow and capital appreciation through potential market cap rate compression or value-add initiatives in a stabilized asset within a strong downtown Dallas location.
The underlying asset demonstrates strong operational fundamentals and historical stability. Constructed in 2007, the property has sustained occupancy rates exceeding 90% consistently over the past decade and currently operates at 93% occupancy. Notably, the property has maintained this occupancy without offering rental concessions over the past 12 months, indicating resilient tenant demand and pricing power in the Downtown Dallas market. Williams characterized the acquisition as aligning with the firm's core investment criteria: "a well-located, well-occupied property with a track record of stability," emphasizing that securing a 6.4% cap rate in a prime downtown location represents a rare market opportunity.
The fund structure reflects institutional-quality terms designed to balance cash flow generation with long-term appreciation potential. Elevest Capital raised approximately $19.1 million in total equity with an $200,000 minimum investment requirement. Target terms include an 8.0% preferred return to limited partners, a 15.6% projected internal rate of return, and a 2.01x projected equity multiple. The capital structure employs an 85/15 LP/GP profit-split arrangement. The anticipated hold period spans two to five years, with a projected 5.25% exit cap rate reflecting conservative assumptions for market conditions at disposition.
Monthly cash flow distributions are anticipated to commence within 60 to 90 days following closing, with a targeted 4.0% average annual cash flow yield on invested capital. The conservative exit cap rate of 5.25%—50 basis points below the entry yield—and the two-to-five-year holding window position the fund to capture both operational cash flow and capital appreciation through potential market cap rate compression or value-add initiatives in a stabilized asset within a strong downtown Dallas location.
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