Continental Properties Closes $203 Million Development Fund IV to Build Workforce Multifamily Housing

MENOMONEE FALLS, Wis. — Continental Properties Company, Inc. announced Oct. 15 the closing of Continental Properties Real Estate Development Fund IV, L.P., with $203 million in total capital commitments, to fund development of suburban workforce multifamily housing.

The fund will finance 10 to 15 suburban multifamily communities under Continental Properties' Springs Apartments and Authentix Apartments brands, the firm said. The projects come from a pipeline that has already cleared the company's initial Investment Committee approval. Continental Properties expects to deploy the fund's capital by the end of 2027.

Continental Properties Development Fund IV Strategy

The Menomonee Falls-based developer, owner and operator of middle-income suburban rental housing said the new communities will offer housing at multiple price points in under-served regions. Springs Apartments are premium low-density communities featuring primarily direct-access homes and resort-style amenities. Authentix Apartments are value-oriented garden-style communities with modern finishes, quality amenities and on-site service.

Jim Schloemer, co-founder and CEO of Continental Properties and recent chairman of the National Multifamily Housing Council (NMHC), said the fund reflects the firm's approach over more than 47 years. "Multifamily construction starts have declined dramatically since the peak in 2022, and much of the development we've seen in recent years has been focused exclusively on the luxury segment at the expense of the middle market," Schloemer said. He added that the widening gap between supply and demand, combined with a historically wide affordability gap between renting and owning, gives the firm "real conviction" in the fund's strategy of building workforce-attainable suburban housing in under-supplied markets.

Kim Grimm, EVP and chief development and construction officer at Continental Properties, said the firm is encouraged by the pipeline assembled for the fund. "At the same time, the commitments we now have in hand put us in a competitive position to look at compelling opportunities in the market, and we'll continue to be selective in pursuing those that best fit our strategy," Grimm said.

Alex Wagner, vice president of investor relations at Continental Properties, thanked existing investors and new partners. "That confidence gives us the ability to move quickly on a well-located, geographically diversified pipeline, and we look forward to putting this capital to work to deliver strong outcomes for our investors and the communities in which we operate," Wagner said.

Fundraising Track Record and Prior Funds

Including Development Fund IV, Continental Properties has raised approximately $2.0 billion since late 2019 across its family of private real estate funds. The new fund is similar in size to Development Fund III, which raised approximately $210 million and was expected to develop 14 to 16 properties with a projected aggregate stabilized value exceeding $1 billion.

Founded in 1979, Continental Properties has approximately $6 billion in assets under management. The firm has developed or acquired more than 145 apartment communities and approximately 40,000 units across 21 states. It ranks in the top 25 on the 2026 NMHC Top 25 Developers list and in the top 50 on the 2026 NMHC Top 50 Owners list.

Multifamily Supply Backdrop

The fund arrives as the national multifamily development cycle shifts. U.S. multifamily deliveries exceeded 690,000 units in the fourth quarter of 2024. Annual deliveries declined to approximately 523,000 units in 2025 and are projected to fall to roughly 333,000 units in 2026. Elevated capital costs, slower lease-up periods in oversupplied markets and tighter construction lending standards have pressured new starts.

National multifamily vacancy was forecast to remain near 8.5% through 2026, before gradually declining toward 7.5% by 2030 as deliveries moderate. Vacancy remains elevated in markets that received substantial new deliveries, particularly parts of the Sun Belt. Continental Properties has emphasized a geographically diversified suburban pipeline.

Outlook for Workforce Multifamily Development

With construction financing more difficult to obtain, discretionary equity capital can allow a developer to acquire land, advance entitlement work and start projects before financing conditions fully normalize. Fund III's projected stabilized value of more than $1 billion on roughly $210 million of commitments implies a development program substantially larger than the equity raised, suggesting that equity from funds such as Development Fund IV may be paired with construction debt and other capital sources.

Securities in the fund were offered through North Capital Private Securities, member FINRA/SIPC. The firm noted that past performance is not a guarantee of future results and that private placement investments are illiquid and speculative.

Sources

• Continental Properties: Continental Properties Closes Fourth Real Estate Development Fund at $203 Million