PIA is pleased to announce the launch of the PIA Residential Fund I. Keeping in line with our investment strategy, the Fund seeks to achieve attractive risk-adjusted returns by investing in a diversified portfolio of value-add institutional multifamily properties in growth markets of the Southeast US. Investments will target well-located multifamily assets that are under-managed and/or can be purchased below replacement cost. As with prior investments, the focus will be on properties that generate consistent cash flow and provide opportunities for rent increases and value appreciation through light to medium renovations and a capital improvement program.  Average target cash-on-cash distributions are 6-8% with an overall target net investor IRR of 12-14%.

As a result, the Fund has already identified its first investment - Summerchase at Riverchase, a 1989 built, 240-unit property in Hoover, a prime Birmingham, Alabama suburb. This is an off-market opportunity initially offered to us at the beginning of the year for $44 million. After continued negotiations, we were able to secure it for $39.25 million. Because of its location, market dynamics, and 95% renovation potential, Summerchase offers an excellent value-add opportunity expected to produce returns in line with the Fund’s targets.