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Black Salmon Closes $250M Multifamily Fund
Announcement is marked by initial asset investment in Austin, Texas
MIAMI (May 23, 2022) – Black Salmon – a national commercial real estate investment and development firm based in Miami – announced today the closing of its $250 million multifamily fund. The new vehicle will focus on acquiring value-add properties in key markets throughout the Sunbelt region over the next 24 months.
The firm’s latest investment strategy is to identify assets in primary and secondary Sunbelt markets with strong economic drivers, such as job and population growth, an educated and diverse talent pool, and business friendly states with strong in-migration. Initiation of the fund is marked by the Black Salmon’s first property acquisition in Austin, Texas.
“This multifamily fund, the first investment endeavor since our company formalized the partnership with LarrainVial, allows our Latin American and European investors to take part in a property sector that will benefit from strong fundamentals within the U.S. commercial real estate market,” said Jorge Escobar, managing partner and Co-CEO of Black Salmon.
Black Salmon’s initial multifamily asset, Arboretum Oaks, was acquired in partnership with Embrey, LLC, based in San Antonio, Texas. Located at 9617 Great Hills Trail, the property features 252 garden-style units in a high barrier to entry residential market in northwest Austin near The Domain. The area is currently experiencing high demand and limited inventory, with Cushman & Wakefield reporting zero units under construction in the fourth quarter of 2021. As the fastest-growing major metro in the U.S. with one of the highest median incomes at $98,900 in 2021, Austin was a natural fit for the firm, as it met all the strategy’s investment criteria.
The Austin market has long been a desired investment market due to its strong population growth and tech driven economy. As an example, Tesla announced in 2021 that it would relocate its headquarters to Austin from California. With rising mortgage rates and current property values, home-buying is less affordable, thus creating demand for rental apartments across U.S. markets like Austin, Texas.
“Record domestic migration to select markets and skyrocketing home prices continue to bolster the multifamily sector, creating an attractive investment product,” added Camilo Lopez, managing partner and Co-CEO of Black Salmon. “Additional factors, like the return to office and corresponding desire to be in urban metros, are fueling demand for existing and ready-to-occupy properties,”
Black Salmon has amassed a two-billion-dollar acquisition and development portfolio, including trophy office, hotel, multifamily, and senior housing properties in major metros, such as San Francisco, Miami, Austin, Orlando, and Phoenix, along with a large development pipeline in South Florida.
About Black Salmon
Black Salmon is a real estate investment and development firm focused on opportunities within the multifamily, industrial, hospitality, office, and healthcare sectors in the United States. Through the development, acquisition and management of these assets, the firm’s goal is to transform real estate into profitable, risk adjusted returns for a select group of investors with the highest standards of transparency and professionalism. Technology, as an agent of change in real estate and an engine of growth for the U.S. economy, is the megatrend that steers Black Salmon’s business strategy. Black Salmon identifies which markets and submarkets are fueled by leading trends. The group seeks and studies opportunities in cities where population and economic growth are strongly supported by the proximity to major metropolitan areas and the presence of top-tier educational institutions. For more information, visit www.blacksalmon.com