Bailard Launches Development-Focused Multifamily Real Estate Fund
Bailard, an independent, values-driven asset and wealth management firm, is pleased to announce the launch of its new development-focused multifamily real estate strategy, alongside its legacy open-end diversified Core private equity real estate fund.
The Bailard Multifamily Fund, L.P. ("BMF") will focus on building "Class A Attainable" units with first-class amenities in under-supplied growth markets around the country. The BMF intends to capitalize on the dearth of affordable/workforce rental housing in the United States. Demographic and economic trends are driving significant unmet demand from middle-income earners for newer high-quality rental units, which Bailard steadfastly believes creates a compelling opportunity for new development. The Fund will target "ABCD" markets, defined as having, among other things, the following attributes:
- Affordability
- Business-friendly environment
- College education attainment
- Demographic strength and excellent growth metrics
"The past two years have been hugely impactful on housing markets across the country, especially for renters," said Preston Sargent, President and CEO of the Bailard Real Estate Fund and head of Bailard real estate. "Bailard's team of investment professionals is launching this fund to access a significant and actionable opportunity for investors, and believes it will also provide societal benefits by creating more affordable housing options for Americans who need them. Increasing access to high-quality, moderately-priced apartments is even more important as rising mortgage rates edge out potential first-time home buyers."
Preston Sargent and Tess Gruenstein, with 40+ years of combined investment expertise, will serve as co-portfolio managers of the Bailard Multifamily Fund. The BMF builds on the strong track record of multifamily development within the firm's existing flagship Core fund. The multifamily developments targeted by the BMF will include an array of desirable amenities including community pool, fitness center, clubhouse with business center, and a variety of energy-efficient features to enhance tenant satisfaction and environmental benefits.
"Through the team's ground-up multifamily developments executed to date, we have seen the returns this strategy can provide our investors, along with the strong demand for this type of development in ?ABCD' markets across the nation," explained Tess Gruenstein, Senior Vice President of Acquisitions & Portfolio Management at Bailard. "This new fund leverages our existing expertise, giving our investors the opportunity for increased exposure to the asset class in a different risk profile than our Core fund."
For more information, please visit bailard.com/real-estate.
About Bailard Real Estate
The Bailard real estate investment team's steadfast mission is to outperform by uncovering value, focusing on fundamentals at acquisition, and actively managing every property throughout its life cycle. Bailard has over 40 years of experience investing in real estate and?during that broad sweep?has navigated five full real estate market cycles. The team's size and structure enable it to be nimble, flexible, and opportunistic when executing its investment and portfolio management strategies. Bailard prides itself on transparency and high-touch client service across its diverse client base that encompasses both institutions and individuals.
About Bailard, Inc.
Founded in 1969, Bailard is an independent asset and wealth management firm serving individuals, families, and institutions alike. Bailard has built a long?term asset management track record across domestic and international equities, fixed income, and private real estate, as well as robust, in?house ESG expertise. Through it all?and in line with its core principles and strong ESG mindset?Bailard works with clients to align their financial goals with their values.
With over $5 billion under management as of 3/31/2022, Bailard is a majority employee?owned and women?led firm, and a Principles of Responsible Investing (PRI) signatory. A values?driven firm based in the San Francisco Bay Area, Bailard has its own private charitable foundation and is deeply committed to its core values of accountability, compassion, courage, excellence, fairness, and independence.
Disclosures
Bailard, Inc. ("Bailard") is the investment manager for the Bailard Multifamily Fund, L.P. (the "Fund"), and is the investment and operating manager of the Bailard Real Estate Investment Trust, Inc. (the "Bailard Real Estate Fund"). Bailard receives annual fees from the funds, which are based on the Net Asset Value. The Funds invest primarily in real estate and, as a result, an investment in the Fund entails significant risks that are customarily associated with the development and ownership of income-producing real estate, including illiquidity, changes in supply and demand, and inexact valuation. The shares and interests fluctuate in value and may be illiquid due to a lack of redemption, the lack of a secondary market and restrictions on transfer. Fees and expenses may offset the return on the investment. The Fund may be leveraged. While projections utilized for acquisitions are based on assumptions that Bailard believes are reasonable under the circumstances, they are subject to uncertainties, changes (e.g., changes in public health, economic, operational, political, legal, tax, and other circumstances), and other risks including, but not limited to, future operating results including rents, occupancy, and other property cash flows, and other expenses.
The Bailard Real Estate Fund's inception date is April 20, 1990. The Bailard Multifamily Fund, L.P. is a new private real estate fund being formed by Bailard, Inc., a California corporation to facilitate investments in multifamily residential real estate projects located in the United States. The Bailard Multifamily Fund, L.P. will be formed as a Delaware limited partnership. Bailard Real Estate 2022 GP LLC, a newly-formed Delaware limited liability company (the "General Partner"), will serve as the general partner of the Fund; and, Bailard will manage the Fund's investment process and day-to-day activities as its investment manager. Investors will be admitted to the Fund as limited partners pursuant to terms and conditions contained in the Fund's Confidential Private Placement Memorandum dated April 2022. This does not constitute an offering. Shares of either fund, if offered, would be available for purchase only by qualified investors. This notice is qualified in its entirety by, and an offer or solicitation will be made only through, a final Confidential Offering Memorandum or Private Placement Memorandum as applicable, and will be subject to the terms and conditions contained in each Memorandum, respectively. The securities of the Fund may not be available to be offered in all states.
It should not be assumed that recommendations made in the future will be profitable or will equal the performance described herein. For a more thorough discussion of the risks involved in making an investment in either Fund, please refer to its Memorandum, including the respective sections related to Risk Factors. Past performance is no indication of future results. All investments have the risk of loss.
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