BOSTON--(BUSINESS WIRE)--Jones Street Investment Partners, a private equity real estate firm focused on multifamily assets located throughout the Northeast and Mid-Atlantic regions of the U.S., today provided a recap of its business activities and operational performance in 2022.
Over the past year, Jones Street was successful in advancing its investment strategy in a challenging and largely illiquid market, purchasing three multifamily communities comprising 817 units across its target markets for $255 million. These acquisitions include a multifamily asset located in Fairfield County, Connecticut; a multifamily property located in Cumberland County, Maine; and a multifamily community in Montgomery County, Pennsylvania. Jones Street’s equity investments in these properties total more than $100 million.
Jones Street also commenced construction on four development projects, including a 282-unit multifamily community located in Kittery, Maine; a 149-unit multifamily community in Boston, Massachusetts; a 181-unit multifamily community in Brunswick, Maine; and a 250-unit multifamily community in downtown Manchester, New Hampshire. Each of these projects will bring much needed quality housing to their respective markets.
The supply-constrained Northeast and Mid-Atlantic markets that Jones Street targets are supported by favorable long-term demographic and employment fundamentals, contributing to the firm’s strong operational performance. Net effective rent was up 8.2% in the fourth quarter over the year ago period and 9.9% for all of 2022. Importantly, this rent growth was achieved in tandem with higher occupancy, with Jones Street’s fourth quarter occupancy reaching 95%, a sequential increase of 0.5%. A combination of rent growth, higher occupancy and strategic capital improvements resulted in fourth quarter same store revenue growth of 10.2% year-over-year.
On the capital raising front, Jones Street raised more than $100 million in 2022 to advance its investment strategy and closed Jones Street Investment Fund I L.P., the firm’s inaugural commingled fund. The capital was raised from a diverse group of family offices and high-net-worth individuals.
Jones Street also continued to add exceptional talent to its team in 2022 with the hiring of Jim Brady as Executive Director of Property Operations. Brady is a 30-year multifamily industry veteran who joined Jones Street from Castle Lanterra Properties LLC, where he ran national operations, audit and property management. Brady is a member of Jones Street’s executive leadership team.
“Despite a difficult investment environment, we enjoyed a highly successful and productive year in 2022, resulting in the advancement of our strategic priorities including expanding our portfolio, growing assets under management, achieving strong operational performance and adding great talent,” said Matt Frazier, Founder and CEO of Jones Street Investment Partners. “We are navigating 2023 from a position of enviable strength with ample liquidity, a robust investment pipeline and persistent appetite among capital allocators for the types of property and regions in which we invest. We recently completed our first deal of the new year – the acquisition of two multifamily communities in Middletown, CT – demonstrating our ability to source and close on attractive transactions. I could not be prouder of all that our exceptional team has accomplished and look forward to further capitalizing on the opportunities we have identified in 2023.”
Jones Street’s investment strategy focuses on the acquisition of attractive risk-adjusted, long-term cash flowing assets intermixed with targeted, short-term capital appreciation and net annualized IRRs in the low to mid-teens. Since its inception in 2014, the firm has built a portfolio and development pipeline comprising 5,650 multifamily units across seven states with a market value of approximately $1.7 billion.
About Jones Street Investment Partners
Jones Street Investment Partners is a privately held real estate investment management firm focused on multifamily investments located in the Northeast and Mid-Atlantic regions of the United States. Formed in 2014, the Boston-based firm is an opportunistic and disciplined value-based investor focused primarily on the management of long-term, cash-flowing investment strategies and drawing on the capabilities of affiliate Jones Street Residential for asset and property management. Aligning an institutional-quality investment and operational approach with the economic and strategic interests of its investors, Jones Street is a trusted source of investment opportunities for its capital partners. Jones Street’s portfolio consists of more than 5,650 apartment units with approximately $1.7 billion of current assets under management and $530 million of equity invested. For additional information about Jones Street Investment Partners, please visit the firm’s website at: www.jonesstreet.com.
