$51M Midwest Rental Push For New Revitate Fund
Orange County Business Journal
By Mark Mueller
Monday, January 24, 2022
Cherry Tree Offshoot Adds 3 Complexes
Newport Beach’s Revitate Cherry Tree, a new multifamily investment fund created last year by a former Irvine Co. apartment exec and members of the locally-based Bhathal family, have kicked off acquisitions.
The group earlier this month announced they had purchased their first three assets, as a part of a multifamily fund launched in October, which aims to acquire both workforce housing and value-add investments in the Midwest and Sunbelt.
The three just-bought properties—Prairie Place, Three Fountains, and Fountainhead—are in Kansas and Kansas City.
The assets, all either built or renovated in the mid-to-late 1980s, total 353 units and $51.5 million in total purchase price. That works out to a price of about $145,000 per unit.
All are “indicative of Cherry Tree’s strategy to acquire and preserve traditional workforce housing communities in growing markets that have consistent employment growth and positive net in-migration,” the group said in a statement.
“Prairie Place and the Fountains Portfolio are a great fit to allow us to engage our best-in-class asset management and operational services for the residents we are excited to serve,” said Chris Marsh, Revitate Cherry Tree co-founder and general partner.
Irvine Co. Exec
Marsh, a local real estate veteran who previously oversaw an aggressive development and acquisition push for Irvine Co.’s apartment division, last August left the Newport Beach developer to lead a new venture of his own.
That firm, Cherry Tree Capital Partners, aims to increase the stock of workforce housing in the Midwest and Sun Belt markets. It had a near-term goal of acquiring north of 1,000 units per market over the next 18 months, Marsh told the Business Journal last summer.
Bhathal’s Revitate
In October, Marsh linked up with Newport Beach’s Bhathal family, best known for apparel manufacturer Raj Swim and as co-owners of the NBA’s Sacramento Kings. At the time, they said they were shifting their family office into a new scalable investment platform open to outside investors.
Their family office, Raj Capital Managing Partners in October unveiled a platform dubbed Revitate to focus on the three of the investment verticals it knows best: real estate, sports and consumer.
Revitate Cherry Tree is a real estate offshoot of that platform
“We want to channel our family’s insights and expertise into larger-scale economic, financial and social impact,” Alex Bhathal told the Business Journal.
Additional closings are anticipated in the coming months, according to the multifamily fund, which has a target purchase price range of $10 million to over $40 million for its apartment investments.
https://www.ocbj.com/news/2022/jan/24/51m-midwest-rental-push-new-revitate-fund/