REAL ESTATE NEWS

Thompson Thrift has raised more than $255 million for its seventh multi-project fund that will allow the real estate firm to pursue high quality multifamily developments.

The proceeds exceeded the Indianapolis-based firm's initial target of $230 million. The Thompson Thrift 2025 Multifamily Development, LP. fund received 80 percent of its commitments from repeat investors in the company.

Thompson now plans to target seven multifamily developments. Particularly, it will focus on putting together "diverse" Class A multifamily communities in "suburban growth areas" across the country, according to the developer.

"Exceeding our capital-raising goal reflects the strong trust our investment partners place in our team and strategy," Paul Thrift, CEO of Thompson, said in a statement.

"With multifamily construction starts at their lowest point in over a decade, we see a significant opportunity to deliver much-needed housing in key markets. We are excited to put this capital to work in building high-quality communities and creating lasting value."

Dating back to its establishment almost four decades ago, Thompson said it has poured over $6 billion into communities located in the Southwest, Southeast, and Midwest. Also, since the company added a multifamily unit to its operations in 2008, it has raised more than $1.6 billion from equity partners. That has helped support building assets in 23 states and 90 communities. Plus, Thompson fetched more than $250 million in June 2024 in its previous multifamily fund. In total, the company operates more than 23,900 multifamily units across the country.

For the most part, an influx of supply and elevated interest rate challenges have caused issues for many landlords in the multifamily space over the past year. However, conditions might be starting to improve. A recent analysis from Gray Capital LLC found that quarterly starts have fallen to under 40,000, which hasn't been that small since the Great Recession. Plus, demand is strong, as 546,000 square feet was absorbed in 2024, representing the second-highest level recorded in the last 40 years. Gray Capital expects supply to continue to decline with demand staying at current levels, which could lead to higher rents.

Source: GlobeSt/ALM