- Middle Street Partners completed a $69M recapitalization, enabling $1B in new multifamily developments and acquisitions.
- The firm, which sold 80% of its stabilized portfolio in 2021, aims to take advantage of a market downturn.
- Multifamily construction starts are projected to be 74% below 2021 levels by mid-2025, setting up potential rent growth and lower vacancy rates.
- The recapitalization involved Inceptiv Management and high-net-worth partners operating under Cannery Woods.
- Inceptiv recently provided $30M in financing to Platte Canyon Capital, which aims to acquire $1B of assets via joint ventures.
Middle Street Partners has completed a $69M recapitalization, positioning itself for $1B in multifamily developments and deals, per Bisnow.
Eyeing Fresh Opportunities
According to Multifamily Dive, Middle Street co-founder Ryan Knapp said the firm is playing offense in the new real estate cycle, leveraging fresh liquidity to expand its footprint.
“This move is not about distress in our portfolio—it’s about increasing our capital flexibility to seize new opportunities,” Knapp told the publication.
Middle Street strategically sold 80% of its stabilized portfolio in 2021, taking advantage of low interest rates and high sale prices. With many loans from that peak now under stress, the firm sees strong buying opportunities.
“Real estate is famously cyclical, and you need these down cycles to get it right,” Knapp explained. “We were disciplined during the peak, and now we’re excited.”
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Strategic Partnerships
The recapitalization was completed with Culver City-based private equity firm Inceptiv Management and high-net-worth partners under the name Cannery Woods.
Inceptiv recently provided $30M in financing to Platte Canyon Capital (PCC), a Denver-based real estate investment firm. According to the Los Angeles Business Journal, PCC is targeting up to $1B in asset acquisitions through JVs over the next three years.
Good-Looking Numbers
According to a late 2024 CBRE report, multifamily construction starts are projected to be 74% below their 2021 peak and 30% below pre-pandemic levels by mid-2025.
This imbalance, coupled with steady renter demand, is expected to drive rent growth and lower vacancy rates.
With fresh capital, Middle Street is ready to take advantage of shifting market conditions and expand its multifamily holdings in key regions.
Notably, since 2009, Middle Street has sponsored over $3B in investments in the Southeast and Southwest, signaling continued confidence in high-growth regions.
