Fairfield Raises $1.5B for Multifamily Fund, Exceeding $1B Target

Fairfield has fetched $1.47 billion from its biggest fundraising ever and now plans to bet on more multifamily properties. The commitments of its U.S. Multifamily Value Add Fund IV LP included a $350 million co-investment equity. Also, the $1.47 billion raised exceeded its initial target of $1 billion.

So far, the developer has deployed roughly $385 million of the funding across 16 assets. The strategy of Fund IV, which includes backing from insurance firms, pension funds, registered investment advisors, and wealthy individuals, will focus on purchasing value-add multifamily properties in 30 metropolitan statistical areas. The exact regions, however, were not made clear by Fairfield.

"We are also encouraged with the diverse composition of the investor base and the fact that two-thirds are new investors to our Value Add series," Trey Stafford, head of capital markets for Fairfield, said in a statement.

"As we continue to expand our multifamily investment strategies, growing our investor base within and outside the U.S. has been a key focus for us. We value the confidence that investors have shown in our platform and ability to execute our strategy."

During its previous fundraising, Value Add Fund III, Fairfield fetched about $1 billion. The San Diego-based firm manages roughly $12.3 billion in assets and operates 45,500 multifamily units. Fairfield is invested in 30 markets across the country, including in California, Texas, Florida, and Virginia.

For multifamily as a whole, the entire CRE asset class has generally suffered across the country due to high supply in the market and elevated interest rates over the past couple of years. However, overbuilding is starting to slow down as new starts fell by 25 percent last year and are expected to drop by another 11% in 2025, according to a report from the National Association of Home Builders. And the trade association predicts that the multifamily space will see the beginnings of a return to normality by late 2025.