ECI Group and ApexOne Launch $500M Multifamily Real Estate Fund Targeting Sunbelt, Midwest and Mountain West

Atlanta-based ECI Group and ApexOne Investment Partners announced May 6 the formation of a strategic joint venture to launch ApexOne-ECI Multifamily Fund VI, LP, a vehicle targeting $500 million in total equity capitalization for multifamily real estate acquisitions, redevelopment, and management across the Sunbelt, Midwest, and Mountain West regions of the United States.

The two firms will serve as co-general partners of the fund and have committed to co-invest more than $100 million of the $500 million total equity capitalization alongside committed investor equity capital. ECI Group's capital commitment is backed by Almanac Realty Investors, a business unit of Neuberger Berman, which has committed up to $350 million to support ECI's continued platform expansion, including its investment in the fund.

Fund Strategy: Value-Add Multifamily Real Estate Acquisitions

The fund intends to execute a diversified growth-and-income investment strategy through disciplined capital allocation, focusing on existing multifamily assets rather than ground-up developments. The fund will emphasize both newer-vintage and traditional multifamily assets, including workforce housing communities, with investment value-add opportunities. According to the announcement, this strategy is designed to generate current cash flow while seeking market appreciation.

ECI Chief Executive Officer and Chief Operating Officer Seth Greenberg cited several market conditions underpinning the fund's thesis. "Our Fund investment strategy focuses on our shared belief in, and experience with, compelling investment opportunities driven by disruption in the multifamily sector," Greenberg said. "These conditions include distressed sale conditions, near-term supply and demand imbalances, and affordability factors in single-family home ownership for many single- and double-income families. We also expect to capitalize on undercapitalized and under-managed conditions at many target assets, bringing ECI's exceptional track record in multifamily operations to bear to improve occupancy, elevate resident satisfaction, and increase marketing efficiencies."

Combined Platform: 50,000 Units and $7 Billion in Multifamily Real Estate

Collectively, ECI Group and ApexOne have acquired or developed approximately 50,000 units and invested over $7 billion across more than 160 multifamily communities throughout the Sunbelt, Southwest, and Midwest regions. The co-general partners have operated and invested in over 130 submarkets through acquisitions, development, or structured debt. The senior executives of the two firms collectively hold more than 300 years of experience in multifamily real estate, spanning property acquisition, finance, investment, development and redevelopment, leasing, and property and asset management.

Ernest Johnson, Partner and Executive Managing Director of ApexOne, highlighted ECI's operational capabilities as a key factor in the partnership. "Partnering with ECI brings together a fully integrated operating platform with a proven ability to drive performance at the property level, alongside a shared strength in identifying and executing on investment opportunities," Johnson said. "Their innovative, AI-enabled approach to leasing, resident engagement, and asset management, combined with a long track record across market cycles and a meaningful capital commitment alongside investors, made them an ideal partner for this fund. We share a strong conviction that this is an attractive point in the real estate cycle to invest in, with compelling opportunities emerging across high-quality assets."

ECI Group's current portfolio comprises more than 7,500 units located throughout the Southeast and Texas.

Institutional Backing: Almanac Realty Investors and Neuberger Berman

The fund's institutional capital structure is anchored by Almanac Realty Investors, which has committed up to $350 million to ECI's platform expansion. Almanac Realty Investors, originally founded in 1981 under the name Rothschild Realty, is a leading provider of growth capital to private and public real estate companies and has committed more than $9 billion in capital to 59 real estate companies throughout North America. Almanac operates as a business unit of Neuberger Berman, an employee-owned investment manager that oversees $563 billion across equities, fixed income, private equity, real estate, and hedge fund portfolios.

ApexOne Investment Partners, founded in 2011, has sponsored five previous funds focused on value-add multifamily and student housing, opportunistic investments, and development. The firm focuses exclusively on multifamily real estate investment.