ATLANTA, GA - Cortland, a vertically integrated, multifamily real estate investment, development, and management company, has formed a programmatic joint venture with Declaration Partners Real Estate (DPRE), a private investment firm anchored by David M. Rubenstein, to invest preferred equity capital in multifamily real estate assets. The venture, which intends to focus on Cortland’s key markets, has initial capital of $100 million and is Cortland's first foray into managing a dedicated fixed-income program.
“Cortland is excited for this new venture with long-term partner DPRE and looks forward to leveraging our mutual multifamily expertise and industry connections to strive for a successful initiative,” Cortland President of Investment Management Jason Kern said. “We believe this well-timed venture positions us to help satisfy the ongoing demand for so-called ‘gap’ capital from owners who are coming up short on proceeds when refinancing debt on their multifamily properties.”
The joint venture is the next step in the evolution of the relationship between Cortland and DPRE, which has seen the two firms invest together in several multifamily assets over the past five years. The venture will seek to provide fixed-income principal investments of between $5 million and $35 million that are subordinate to debt from senior lenders.
“We are pleased to form this strategic partnership with Cortland, which is expected to provide opportunities to capitalize on attractive multifamily investments primarily in the Sunbelt and Mountain West regions,” DPRE Partner Ron Dalal said. “We believe Cortland’s multifamily investment and operational expertise pairs well with Declaration’s flexible capital, sourcing capabilities, and structuring acumen. We are excited to partner with Cortland to provide preferred equity for both operational assets and development projects.”
Cortland, which manages and is invested in, directly or indirectly, more than 250 apartment communities comprised of 80,000-plus homes in the US, has a demonstrated track record in the multifamily industry. With over $20 billion in AUM, Cortland recently announced the close of its Cortland Enhanced Value Fund (CEVF) VI, L.P. and its affiliated entities (“Fund VI”), securing $1.5 billion in commitments for its flagship value-add multifamily private equity investment strategy, exceeding its $1.0 billion target.
With $2.2 billion of AUM, Declaration combines institutional capabilities with a family office perspective to make differentiated investments with attractive risk-adjusted returns by being selective and flexible. Directly and with specialist, programmatic partners, DPRE has focused on well-located real estate assets across US geographies and property types, favoring rental housing, industrial / logistics, and self-storage.
About Cortland: Cortland is a vertically integrated, multifamily real estate investment, development, and management company focused on delivering resident-centric, hospitality-driven apartment living experiences. Headquartered in Atlanta, Cortland manages and is invested in, directly or indirectly, over 250 apartment communities comprised of over 80,000 homes in the US with regional offices in Charlotte, Dallas, Denver, Houston, Orlando, and Phoenix. Cortland has significant experience in acquiring, developing, renovating, owning, and operating multifamily communities, leveraging the services of its construction, design, and property, asset, and investment management affiliates. Internationally, Cortland maintains a management and development platform in the UK.
About Declaration Partners: Declaration Partners is a private investment firm that seeks to be a value-added capital partner and strategic resource to founders & entrepreneurs, management teams, and asset owners. Anchored by the family office of private equity veteran and philanthropist David M. Rubenstein, Declaration invests on behalf of family offices and like-minded institutional investors. Declaration’s approach emphasizes partnership born from its family office heritage while seeking to achieve favorable long-term outcomes with strong alignment. Declaration has approximately $2.2 billion in assets under management across its private investment strategies, which include real estate, tactical growth equity, GP solutions, and other opportunistic strategies. The firm was founded in 2017 and is headquartered in New York with an office in the Washington, DC area.