Ballast Rock Maintains Investor Distributions Despite Challenging Multifamily Real Estate Market

Investment management firm Ballast Rock has released its 2024 performance data for Sunbelt Multifamily Funds I and II, showcasing strategic investment approaches in a challenging real estate environment. The company's funds have maintained consistent investor distributions while navigating market complexities.

Sunbelt Multifamily Fund I (SB1), launched in 2019, has already sold five of its nine acquired properties, generating significant returns. The fund purchased 689 apartment units at an average cost of $52,387 per unit and sold them at an average of $102,395 per unit. To date, SB1 has distributed $50,768,242 to investors on an initial $32,000,000 equity investment.

Sunbelt Multifamily Fund II (SB2) demonstrated steady performance in 2024, generating 7% cash returns from operations and maintaining a consistent 7.0% capitalization rate. The fund has distributed $10,500,000 to investors from approximately $52,500,000 in equity. SB2 completed its property acquisitions in early 2023 and made its first property disposition in February 2025.

Ballast Rock's leadership emphasized their disciplined approach in a tough market. CEO Thomas Carroll noted that while many private equity real estate funds are struggling to make distributions, Ballast Rock continues to deliver results by aligning management's interests directly with investors through personal capital investment.

The company has also launched Sunbelt Multifamily Fund III (SB3), targeting $100 million in equity, with its first acquisition completed in July 2024. COO Ian Garcia highlighted the firm's commitment to workforce housing in the Southeast, promising continued rigorous asset evaluation and strategic acquisitions.

This performance underscores Ballast Rock's resilience and strategic positioning in the multifamily real estate market, particularly in workforce housing segments. By maintaining disciplined investment criteria and focusing on southeastern markets, the firm demonstrates an ability to generate returns even during challenging economic conditions.