RICHMOND, Va., Jan. 25, 2023 — 37th Parallel Properties (“37th Parallel”) today announced 2022 transaction volume of $300 million, bringing their historical transaction totals to 10,000 units representing over $1 billion in value. The firm’s most recent transaction was Grand Reserve, a 291-unit, 2013-built community in Katy, one of the strongest submarkets in Houston. The asset was acquired off-market by 37th Parallel on behalf of their investors and joint venture partner.
“2022 was an expansion year for 37th Parallel,” said Dan Chamberlain, Managing Partner. “We deepened our geographic presence, grew our team, and expanded our execution capabilities. We ended our record year with the acquisition of Grand Reserve in Katy, a submarket that is in the 97th percentile for school quality and boasts a median household income of $142,000,” said Chamberlain.
The property features a mix of one-, two-, and three-bedroom units with large floorplans averaging 933 square feet. Apartment and community amenities include nine-foot ceilings, private patios and balconies, resort-style swimming pool, as well as an impressive 141 attached and 69 detached garages.
Doug Fraser, who leads the acquisition efforts for 37th Parallel, said, “Two-thirds of our acquisitions in 2022 were sourced on an off-market basis, leveraging our strong closing track record and deep-rooted industry relationships to source the best available opportunities during a time of significant market volatility and uncertainty.”
This acquisition marks the ninth and final material investment from 37th Parallel’s inaugural fund, 37P – Fund I, which closed to new investment in early 2022. The Fund now has diversified investments in Atlanta, Austin, Dallas, Houston, and San Antonio. The firm launched its income and equity growth fund, 37P – Fund II, in September 2022. Fund II will employ a similar strategy as Fund I, targeting value-add and core-plus multifamily real estate in dynamic growth markets in the Southeast and Texas.
The firm continued their ongoing portfolio optimization strategy in 2022. “Our persistent focus on maintaining a 100% profitable investor track record was highlighted even more by the negative public market experience for many stock and bond investors in 2022,” said Chad Doty, Managing Partner. “Our 2022 dispositions resulted in average annual gross investor profit of 32.49%, and an average gross multiple of 2.66x on initial investment. We look forward to 2023, which will be challenging, but should also provide opportunities for those who know how to invest conservatively in strong markets.”
37th Parallel Properties is a multifamily investment firm focused on owning and operating institutional-quality multifamily communities in the South and Southeast. Based in Richmond, VA and founded in 2008, 37th Parallel has transacted on 10,000 units representing over $1 billion in value, all while maintaining a 100% profitable track record for its family of high net worth, family office, and institutional investors.
To learn more about 37th Parallel, visit www.37parallel.com.