#United States #Chicago #Real Estate #origin investments #Multifamily Fund

Origin Investments Launches New Fund for Growth-Oriented Investors

Origin Investments, a prominent player in the Class A multifamily real estate sector, has officially launched its Origin Select Asset Fund, which is set at $100 million. This fund is designed specifically for growth-oriented investors looking to tap into the lucrative real estate market characterized by significant supply constraints and growth potential, particularly across the Sun Belt and Mountain states.

The Origin Select Asset Fund aims to invest in five ground-up multifamily projects, which are expected to yield high margins. Notably, this fund presents an opportunity for both individual investors and registered investment advisors (RIAs) to enhance their returns through a co-investment vehicle. This co-investment option allows investors meeting certain capital requirements to invest alongside the main fund without incurring management fees or carries during the initial five years.

According to Michael Episcope, Co-CEO of Origin Investments, the timing for this fund couldn't be better. He believes that 2026 will be a pivotal year for real estate investments due to improving market fundamentals. "We wanted to alleviate some of the traditional challenges associated with real estate investing, make it more tax-efficient, and adopt strategies to maximize long-term wealth generation," he stated.

Fund Highlights

The Origin Select Asset Fund targets a net internal rate of return (IRR) of 14% to 16%, translating to an equity multiple of 1.5x to 1.6x over a four-year horizon. This presents a robust opportunity for investors, particularly co-investors who may see further enhanced returns due to waived fees on a portion of their investments.

The unique structure of this fund is reflected in its short duration of five years, which is aimed at maximizing returns while minimizing the fund's tail risk. Investors will have the flexibility to redeem their interests after five years or can opt to remain invested to benefit from income at the time of delivery of new developments.

Market Conditions Favor Growth

Origin Investments highlights the current market environment, which includes several tailwinds that position the fund for success. With homeownership costs substantially higher than renting—64% more expensive—alongside a relentless national housing shortage (exacerbated by a 27% drop in new apartment construction since the peak of Q3 2024), demand is significantly outstripping supply across key markets.

The fund's pipeline includes shovel-ready development opportunities, particularly in Phoenix and Las Vegas, both markets experiencing surging demand for multifamily living spaces. In Phoenix, Origin plans a Class A development partnered with NRP, noted for its strong presence in the market, predicting an annual rent growth of 4.3% over the next five years.

In Las Vegas, another promising project is underway with a well-regarded local sponsor recognized for its cost-effective practices. This project is anticipated to cost over 15% less than comparable ventures, placing it in a prime position within one of the area’s most dynamic growth markets.

The strategic positioning of these developments within flourishing metro areas, with key accessibility to business hubs and amenities, further enhances their appeal.

Looking Ahead

Recent data from RealPage indicates that the provision of new multifamily units is set to decrease, with projections suggesting that the streak of delivering 100,000-plus units per quarter may come to an end during 2026. This trend underlines the clear demand for new housing developments, making the Origin Select Asset Fund a timely investment option for those looking to capitalize on a burgeoning market.

Founded in 2007, Origin Investments has established itself as a leader in the realm of private real estate management, focusing on assisting high-net-worth individuals, family offices, and RIAs in wealth preservation and growth through strategically deployed real estate solutions. The fund reflects the company's ongoing commitment to providing innovative investment opportunities in rapidly expanding markets across the United States.

To dive deeper into investment possibilities, visit www.origininvestments.com.