Greybrook launches US multifamily fund, starting with $110M in Atlanta assets
What's the deal? Toronto-based private equity investment manager GreybrookDealroom has a profile for this one. Try Dealroom → has launched the Greybrook U.S. Multifamily Income & Growth Fund, an open-ended vehicle focused on U.S. apartments. Its first acquisitions are two garden-style communities in metropolitan Atlanta — Meadow Springs and Meadow View — comprising more than 450 units, with a combined value of about $110 million.
Why now? Greybrook sees a compelling entry point south of the border. "We felt that the U.S. — on a relative value perspective and ultimately from an investor's vantage point to produce a good risk-adjusted return — was a more compelling proposition than Canada," said Greybrook Securities chief executive officer and Greybrook Capital partner Sasha Cucuz.
Why the US? Cucuz pointed to deeper liquidity: much of Canada's multifamily stock is held long-term by institutions and families, while the US has more assets, more transaction activity, and prices that have softened. "The U.S. is one of the most liquid and deepest capital markets in the world," he said.
What's the endgame? The fund builds on Greybrook's stake in roughly 4,600 multifamily units across Canada and the US. Unlike its earlier value-add strategy of buying older assets needing heavy renovation, the new fund targets newer class-B properties that require less capital, prioritising net operating income, asset value and cash flow.
It is buying garden-style apartments below replacement cost in affordable Sun Belt and Midwest markets, including Atlanta, Dallas-Fort Worth, Houston, Charlotte, Nashville, Tampa, Indianapolis, and Cincinnati. A third asset in Dallas-Fort Worth, adding more than 300 units, is in the pipeline.
The terms: The fund targets a total annualised return of 10 to 12 percent and an annual distribution of 5 to 5.5 percent, paid monthly. Its investor base is predominantly high net worth individuals and family offices, and Cucuz said their response has been positive. He aims to add $100 million to $150 million to the fund annually for further acquisitions.
The signal: Greybrook is betting Canadians are under-allocated to US real estate, citing apartment REITs holding only domestic portfolios. With rent-to-income ratios below 20 percent in some target markets and Americans more willing to move between cities, the firm is positioning the softer US market as a value opportunity relative to Toronto or Vancouver.
Read more: RENX
