Multifamily Development Demand, Values are Outpacing Construction Costs

Topic:  • By Origin Investments • February 26, 2022 Views

The latest news and updates from Origin Investments | February 26, 2022


David Scherer, Origin Co-CEO

8 min read

Soaring building material prices have made multifamily construction costs and timelines rise. As we actively monitor and assess costs in our underwriting during this volatile period, we remain confident in the returns that multifamily real estate investment provides and believe there are substantial reasons for private investors not to stay on the sidelines.

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Michael Episcope, Origin Co-CEO

8 min read

Accredited investors who want to diversify their portfolios and maximize capital growth through one of the fastest-growing sectors in real estate can do so now with our newest Fund: Growth Fund IV, which focuses exclusively on high-potential ground-up developments in the southeast, Texas and southwest markets.

The $250 million, closed-end Fund will invest up to $1 billion in multifamily development projects across the fastest-growing cities in those regions. The Fund is targeting a net IRR of 14% to 16% and net equity multiple of 1.7x to 1.8x. There is also an optional hold period at the end of the Fund’s life to generate a target net annualized total return of 8% to 11%.

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In Private Real Estate, What’s the Difference Between Credit and Equity Investing?

Tony Schirmang, Vice President of Investor Relations

8 min read

To allocate their portfolio assets properly, investors should know the differences between real estate credit and real estate equity. Each has specific benefits and risks, and by offering both strategies in our core lineup, investors can customize their real estate exposure according to their needs.

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Upcoming Webinar

Managing Risk in an Inflationary Environment

U.S. inflation increased 7.5% in January, a four-decade high. With commodity prices soaring and costs for services also starting to pick up, the Fed is expected to increase interest rates and reduce its balance sheet to curb price pressures. What impact will this have on multifamily private real estate investing, and what are we doing at Origin to mitigate any risk to our investments during this time?

Join Origin Co-CEO David Scherer and Managing Director of Investment Management Marc Turner on Thursday, March 3, at 2 p.m. CT for an in-depth discussion on how multifamily real estate can act as a hedge against inflation and subsequent rising interest rates, and how Origin’s aggressive approach has successfully mitigated these market headwinds in the past.

Register Now


Sale: The Iroquois Club – Naperville, IL – Origin Fund II

Gross IRR: 21% | Gross Equity Multiple: 2.99x

Origin and joint venture partner Randolph Street Realty recently completed the sale of The Iroquois Club, a 272-unit apartment complex in west suburban Naperville, IL. During a 6-year hold period, the asset underwent an extensive, multi-tiered value-add investment and management strategy that included condo-repurchasing and significant unit renovation. At the time of disposition, The Iroquois Club had an occupancy of 97.4%. The deal was finalized on February 9, 2022, for $69.8 million, roughly 87% higher than the 2015 purchase price, generating 21% IRR and 2.99x equity multiple for Fund II investors.

Interested in learning more about our open investments? Please visit our website.



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Origin Investments

Origin Investments is a top-ranked real estate firm committed to educating investors on private equity commercial real estate.