Brookfield-based MLG Capital LLC is raising a $100 million fund to invest in real estate, it announced today.
[caption id="attachment_166928" align="alignright" width="150"] Wallen[/caption]
MLG Private Fund III is scheduled to close Sept. 30. It is open to new accredited investors. According to SEC filings, the fund was launched in August 2016 and had raised $64.9 million as of April 30, 2018.
Using its private funds, MLG invests in commercial real estate projects across the country, focusing on multifamily, industrial, retail and office properties. Established in 1987, MLG Capital has acquired about 15.5 million square feet of real estate. The exited and estimated current value of its portfolio is more than $1.5 billion. MLG Capital and its affiliated companies have grown to about 250 employees.
“MLG Private Fund III has had incredible acquisitions to date,” said David Binder, vice president at MLG Capital. “Our Fund III Investors are already diversified into over 3,200 multi-family units and over 2.2 million commercial square feet, with locations across several states."
In June, MLG/PF Trails at Creekside Co-Investor LLC reported it had raised $18.4 million in equity for a commercial real estate project, according to an SEC filing. MLG on Sept. 5 closed on the acquisition of Trails at Creekside, a 444-unit apartment complex in Allen, Texas, for which it was seeking $29.7 million in equity, according to its website. It planned to invest in the deal with its series of funds.
Also this year, Fund III has invested in Boone Plaza Industrial in Minneapolis; Landings at Carrier Parkway in Dallas; Sienna Springs Apartments in Phoenix; Grafton Commons Retail Portfolio in Grafton; and Northern Lights Industrial Portfolio in Bloomington and New Hope, Minnesota.
“We've had overwhelming interest in Fund III,” said David Binder, vice president at MLG Capital. “Originally, we targeted to raise $100 million of equity. We maintained the ability to raise up to $150 million of total equity. We think we will land somewhere in the $135 (million) to $140 million range, proving our investors truly love what we are doing.”
MLG Capital plans to launch MLG Private Fund IV on Oct. 1.
"We target 13 to 15 percent net IRR returns to our investors from a combination of cash flow and appreciation over time and have consistently achieved these returns over our 31+ year history,” said Timothy Wallen, chief executive officer and principal at MLG Capital.