Firm Known for Successful Sun Belt Multifamily Investments Sees Ideal Climate for Multifamily Capital
Atlanta, Georgia June 4th, 2024 – Mesa Capital Partners, founded by Jeff Tucker and Tom Bell, former chairman of Cousins Properties, is pleased to announce the closing of their BMCC Investment Group 10 totaling $250 million of committed capital. Participants include both long-time Mesa investors as well as new investors.
BMCC has raised over $850 million of equity across its ten partnerships to support Mesa. Since 2010, Mesa has developed or invested in multifamily properties valued at over $5 Billion.
The newly raised BMCC 10 capital will be used for a combination of newer stabilized acquisitions, direct Mesa developments, and joint venture capitalizations. Mesa views current market characteristics as the most conducive in over a decade and reminiscent of the investment environment when Mesa first formed.
“Several of our best performing investments were made coming out of the Great Financial Crisis,” said Tucker, managing partner and CEO of Mesa Capital Partners. “We see many of the same features emerging. High interest rates and the sizable amount of loan maturities are creating significant strain for many owners and developers who are unable to refinance projects, creating pressure to sell.”
Tucker continued, “In my 35 plus years of multifamily investment and development across the Southeast, I have encountered very few periods as ideal as now for putting capital to work in the multifamily sector.”
A number of factors are contributing to Mesa’s positive outlook. Multifamily occupancies in most Sun Belt cities remain strong, while population and job growth continue to trend towards the Southeast. Meanwhile, future multifamily supply should be constrained by elevated interest rates and reduced construction lending. These factors contribute to Mesa’s expectation for above-trend Sun Belt rent performance starting in 2025-2026, leading to value appreciation for its upcoming investments.
“We have been very fortunate to have earned exceptional returns for our investors from our first 9 investment partnerships and we expect BMCC 10 to continue and extend this record,” said Bell, managing partner of BMCC Investment Group and chairman of Mesa Capital Partners.
Since its founding in 2010, Mesa has invested prudently yet aggressively, producing exceptional results throughout the company’s 15 years. With the completion of its BMCC 10 fundraise, Mesa intends to approach the current opportunity in similar fashion.