Excelsa has closed its second U.S. multifamily fund with $154 million in raised equity. The fundraise began in January and reached its goal of $150 million by the end of March, targeting family offices and high-net-worth investors from the Middle East and Persian Gulf states.
The asset manager is the U.S. real estate investment arm of Excelsa Holding, an independent investment firm with close to $400 million in total assets under management with operations in the U.S. and the Middle East.
“The performance of our first fund has been exceptional with very strong yields distributed quarterly and a significant capital appreciation that we are starting to materialize through several exciting exits in the pipeline,” Fadi Majdalani, managing partner of Excelsa. “We are honored that all of our Fund I investors and co-investors have trusted us by joining our second fund and increasing their commitments to Excelsa.”
The new fund will focus on value-add multifamily and core-plus properties across several U.S. states, including ones in the Sun Belt. It has already deployed $27 million in equity after jointly acquiring, with Excelsa US Real Estate I, the 256-unit Fox Hunt Farms in Fort Mill, South Carolina, in December and the 276-unit Coventry Green in Goose Creek, South Carolina, in February. According to the firm, these acquisitions occurred during a pre-launch phase and through bridge loans from the investors.
“Our fundraising success highlights the strong appetite for multifamily investments from the Middle East and Gulf states,” added Khalil Hibri, head of business development at Excelsa. “Our investors seek stable yields and a strong hedge against inflation, which U.S. multifamily delivers.”
Founded by Bassam Yammine, Excelsa began investing in multifamily properties in 2009. The firm has acquired more than $420 million in U.S. real estate properties through direct investments and through its first multifamily-focused fund. Its portfolio includes 2,500 multifamily units as well as office properties and land.
