$1.5B Multifamily Fund

Investment giant Cortland has closed a $1.5 billion equity fund to invest in multifamily properties across the country. The raise is a sign of the sector’s resiliency despite concerns about oversupply. Also for today: New Jersey is dramatically outpacing New York when it comes to residential development.

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— Tom Acitelli, Deputy Editor

Cortland Closes $1.5B Value-Add Multifamily Fund

Cortland — an Atlanta-based multifamily investment giant — has closed its Cortland Enhanced Value Fund VI after securing $1.5 billion in equity commitments, Commercial Observer has learned. The fund blew past its $1 billion target, and exceeded the firm’s previous record of $650 million in equity commitments delivered from the Cortland Enhanced Value Fund V, which closed in May 2021. Jason Kern, Cortland’s president of investment management, told CO that his firm benefited from a new class of investors who sought to park capital with capital markets experts specializing in a single asset class. “Overall, there’s been a trend in recent years for institutional investors investing into more diversified allocator-type funds, who do multiple geographies and property types, but there’s been a general trend on the margin to go to the vertically integrated operator, or manager, like Cortland,” said Kern.”

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New Jersey Is Beating New York in Housing Production — By A Lot

New York and New Jersey battle over who has the best pizza, musicians and pro sports teams. But, if there’s one area where there’s really no point in getting in each other’s faces, it’s that the Garden State dominates in building new housing. Northern New Jersey is in the midst of a historic construction boom that has helped it attract wavering New York households which have found it maddeningly difficult to secure an affordable home in the Empire State. New York’s losses have become New Jersey’s gain. More than 75,000 New Yorkers packed up and headed across the Hudson River in 2022 in search of less expensive, more spacious homes while housing development in New York slowed to a trickle. The number of young children in New York City specifically fell 18 percent since April 2020 while 35 percent of people leaving the city since the pandemic said they moved because the cost of living was too high, according to recent analyses.

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