Key Takeaways
- • SWBC Real Estate, LLC launched SWBC RE Fund II, LP, its second real estate fund, with a target of $200 million, following $125 million in capital commitments raised by its inaugural fund, SWBC RE Fund, LP.
- • The fund will focus on multi-family acquisitions and future development across the Sun Belt states, administered and operated with SWBC Investment Company, an SEC-registered investment advisor.
- • The offering is a private placement for institutional and accredited investors, including pension funds, endowments, municipalities, family offices, and high-net-worth individuals.
- • The manager cites rising interest rates, higher operating costs, increased debt service, and elevated supply as drivers of declining property values, which it says allows quality multi-family assets to be acquired at attractive discounts to replacement cost.
- • The fund uses a single-promote structure with competitive management fees, according to the announcement.
Summary
SWBC Real Estate, LLC, headquartered in San Antonio and Dallas, has announced the launch of SWBC RE Fund II, LP, its second real estate investment vehicle, according to a Business Wire release. The fund targets $200 million in capital and will concentrate on multi-family acquisitions and future development opportunities throughout the Sun Belt states. The predecessor fund, SWBC RE Fund, LP, raised $125 million in capital commitments.
SWBC Real Estate will partner with SWBC Investment Company, an SEC-registered investment advisor, to administer and operate the fund. The offering is structured as a private placement for institutional and accredited investors. The release says the opportunity is suited to large institutions, pension funds, endowments, municipalities, family offices, and high-net-worth individuals.
SWBC Investment Company CEO Scott Rykert said the fund "represents the next chapter" in the firm's real estate strategy and argued that periods of market disruption often create the strongest opportunities for long-term accredited investors. Stuart Smith, Chief Operating Officer of SWBC Real Estate, said the next generation of multi-family investment will be defined by disciplined acquisitions, operational excellence, and the ability to navigate a more complex capital environment.
The manager attributes its opportunity thesis to a challenging market backdrop. According to the release, rising interest rates, higher operating costs, increased debt service, and elevated supply levels have contributed to declining property values in many markets, allowing quality multi-family assets to be acquired at attractive discounts to replacement costs. The fund features a single-promote structure and competitive management fees.
The release is a marketing announcement and carries standard disclaimers. It states that it does not constitute an offer to sell securities, that offers will be made only to qualified accredited investors through a Confidential Private Placement Memorandum, a Limited Partnership Agreement, and a Subscription Booklet, and that investment involves a high degree of risk. The financial information cited is stated as of 1/1/2022 and may be initial estimates. Securities are offered through SWBC Investment Services, LLC, a registered broker/dealer and FINRA/SIPC member.
SWBC Real Estate will partner with SWBC Investment Company, an SEC-registered investment advisor, to administer and operate the fund. The offering is structured as a private placement for institutional and accredited investors. The release says the opportunity is suited to large institutions, pension funds, endowments, municipalities, family offices, and high-net-worth individuals.
SWBC Investment Company CEO Scott Rykert said the fund "represents the next chapter" in the firm's real estate strategy and argued that periods of market disruption often create the strongest opportunities for long-term accredited investors. Stuart Smith, Chief Operating Officer of SWBC Real Estate, said the next generation of multi-family investment will be defined by disciplined acquisitions, operational excellence, and the ability to navigate a more complex capital environment.
The manager attributes its opportunity thesis to a challenging market backdrop. According to the release, rising interest rates, higher operating costs, increased debt service, and elevated supply levels have contributed to declining property values in many markets, allowing quality multi-family assets to be acquired at attractive discounts to replacement costs. The fund features a single-promote structure and competitive management fees.
The release is a marketing announcement and carries standard disclaimers. It states that it does not constitute an offer to sell securities, that offers will be made only to qualified accredited investors through a Confidential Private Placement Memorandum, a Limited Partnership Agreement, and a Subscription Booklet, and that investment involves a high degree of risk. The financial information cited is stated as of 1/1/2022 and may be initial estimates. Securities are offered through SWBC Investment Services, LLC, a registered broker/dealer and FINRA/SIPC member.
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