Press Release —
WAYPOINT RESIDENTIAL CLOSES 2021 WITH OVER $1.2 BILLION IN SALES ACTIVITY AND $103 MILLION FUND CLOSE
Waypoint Residential has announced the final closing of its subsidiary’s inaugural closed-end commingled fund with $103 million in Fund I equity. This fund closing marked the end of a highly active 2021 for Waypoint, which drove $1.94 billion in total investment activity across the U.S., including $661 million across 10 acquisitions and $1.28 billion across 23 sales.
Fund I’s capital will be deployed on strategic multifamily investments in the Sunbelt, a region in which Waypoint sees a longer-term housing boom being accelerated by the pandemic and residential migrations.
The closing of Fund I builds on Waypoint’s decade-long track record of successful multifamily investing. Founded in 2011, the firm has invested in more than 31,000 apartment units, representing approximately $5 billion in total investment activity in both value-add acquisitions and ground-up development. In that time, Waypoint has also sold 77 investments, generating more than $3.2 billion in proceeds to investors.
“I am proud of what we have accomplished in our first decade,” said Scott Lawlor, CEO, Waypoint and the Waypoint General Partner. “Investing is always challenging, and this has recently been underscored by the unprecedented economic challenges presented by the pandemic. The key to our continued success is having a strong team of experienced, aligned, empowered and motivated people. I am excited by our current team’s ability to continue expanding our history of excellent client service and investment returns.”
Waypoint is now in the market with its second closed-end commingled fund offered by a second subsidiary general partner, Waypoint Strategic Sunbelt Apartment Fund II, LP, which is seeking to raise $200 million in equity. Fund II will continue to focus on development in the Sunbelt. Waypoint believes the best risk-adjusted returns are currently achieved by delivering new, well-amenitized assets in Sunbelt markets where housing supply has not kept pace with outsized population and employment growth. Fund II is designed to appeal to both mid-sized institutional and private investors that have historically had limited opportunities to invest in a diversified pool of high-quality apartment developments.
“Larger institutional investors have been able to gain exposure to development by partnering with merchant builders while private capital has often invested through syndications,” said Reagan Pratt, Head of Capital Markets, Waypoint. “There has been a gap in the investment market, forcing mid-sized institutional investors and private capital either to forgo development altogether or accept asset concentration risk to gain exposure to multifamily development. Fund II fills a tremendous void, as investors will be investing alongside an experienced, diversified, vertically-integrated developer, while avoiding the allocator/operator dual fee double promote structure common elsewhere in the market in allocator funds.”
About Waypoint Residential
Waypoint Residential is a vertically integrated and specialized developer, owner and operator of well-amenitized, Class A market-rate multifamily communities, primarily focused on high-growth markets in the Sunbelt region of the United States. Waypoint was established in 2011 by Scott Lawlor, Founder and CEO, to identify, acquire, develop and operate multifamily communities that offer value to residents and compelling risk-adjusted returns to its investors. Waypoint is headquartered in Boca Raton, FL with regional offices in Atlanta and Dallas. Since its founding, Waypoint has developed, acquired and operated over 31,000 housing units across 130 properties, representing over $5.0 billion of real estate value. Waypoint has managed investments on behalf of a diverse base of more than 2,100 investors, including high-net-worth individuals, family offices and institutions.
Some of the statements in this release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “will,” “expect,” “believe,” “estimate,” “continue,” “anticipate,” “intend,” “plan” and similar expressions are intended to identify these forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. The forward-looking statements are based on the Fund's and Pinnacle Partners' beliefs, assumptions and expectations, taking into account all information currently available to them. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to the Fund or Pinnacle Partners or are within their control. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, including (1) changes in political, economic or industry conditions; (2) the impact of increased competition; (3) the impact of legislative and regulatory actions and reforms, including OZ-related; (4) the performance of the Fund’s investments; and (5) Waypoint Residential’s ability to attract and retain key employees.
The foregoing list of factors is not exhaustive. For more information regarding these risks and uncertainties as well as additional risks, you should refer to the risks applicable to the Fund as described in the Fund’s Confidential Private Placement Memorandum. The forward-looking statements included in this release are made only as of the date hereof. The Fund and Pinnacle Partners undertake no obligation to update or revise any forward-looking statement as a result of new information or future events, except as otherwise required by law.
This document is not an offer to sell securities and is not soliciting an offer to buy securities in any jurisdiction where the offer or sale is not permitted.
The Berman Group, Inc.