H
ighland Real Estate Partners, a private real estate investment manager, has reached a first close of $18m in commitments for its Highland SMF Opportunities II fund. The fund aims to acquire multifamily assets that larger institutional investors often overlook. With a target size of $25m, the firm expects to reach a final close by April 1st, 2025.

    Highland has already started building its portfolio with two acquisitions in Salt Lake City completed in Q4. The team plans to implement value-add initiatives to drive occupancy gains and enhance asset quality for residents.

    "We're well-positioned to execute on our strategy and capitalize on market dislocations," said Ben Frazer, Investment Partner & Co-Founder. "We appreciate the confidence of our investors and remain committed to delivering attractive returns."

    The firm's vertically integrated property and asset management infrastructure sets it apart from competitors that rely on third-party vendors. Highland's 15-person team is dedicated to acquiring and operating its assets.

    With this first close, the Highland SMF portfolio will grow to over $275m in gross asset value. The fund aims to consolidate smaller multifamily assets and drive returns by exploiting inefficiencies in a fragmented market dominated by undercapitalized players.

    Highland Real Estate Partners has approximately $225m in real estate under management (gross asset value), spanning over 1,000 apartments across the Chicagoland, Salt Lake City, and Tucson markets.