Ballast Rock, a diversified investment management firm, has released its 2024 performance data for Sunbelt Multifamily Funds I and II, showcasing strategic success in the competitive real estate market.
Sunbelt Multifamily Fund I (SB1), launched in 2019, has made significant strides in property acquisition and disposition. Between February 2019 and January 2021, the fund acquired nine properties comprising 1,110 apartment units for $63,630,000. By early 2022, SB1 began selling properties, generating gross proceeds of $70,550,000 from the first five properties.
The fund’s performance metrics are impressive, with apartment units purchased at an average cost of $52,387 per unit and sold at an average of $102,395 per unit. To date, SB1 has distributed $50,768,242 to investors on an initial equity investment of $32,000,000. Ballast Rock anticipates completing exits for the remaining four assets within the next 12 to 18 months.
Sunbelt Multifamily Fund II (SB2), initiated in 2021, completed its asset acquisition in early 2023 with nine properties totaling 1,049 units for $105,363,000. In 2024, SB2 generated a 7% cash return from operations and maintained a consistent capitalization rate around 7.0%.
The fund has demonstrated steady investor distributions, paying 7.5% in 2021 and 2022, reducing to 7.0% in 2023 and 2024. SB2 has distributed $10,500,000 on approximately $52,500,000 of invested equity. The first property disposition occurred in February 2025, with plans to exit remaining assets opportunistically over the next 24 months.
Thomas Carroll, Ballast Rock’s Chief Executive Officer, highlighted the challenging multifamily real estate environment in 2024. He emphasized the firm’s commitment to delivering results by maintaining focus, diligence, and discipline while aligning management’s interests with investors through direct capital investment.
The company has also launched Sunbelt Multifamily Fund III (SB3) in July 2024, targeting $100 million in equity. Ian Garcia, Chief Operating Officer of Ballast Rock Real Estate, expressed confidence in the firm’s southeastern workforce housing strategy and commitment to rigorous asset evaluation.
Ballast Rock’s approach underscores the importance of strategic investment, thorough due diligence, and adaptability in navigating complex real estate markets. By maintaining a disciplined investment philosophy and focusing on workforce housing in the Southeast, the firm continues to demonstrate resilience and potential for consistent returns.
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