HOUSTON, TX – 37th Parallel Properties announced 2022 transaction volume of $300 million, bringing their historical transaction totals to 10,000 units representing over $1 billion in value. The firm’s most recent transaction was Grand Reserve, a 291-unit, 2013-built community in Katy, one of the strongest submarkets in Houston. The asset was bought off-market by 37th Parallel on behalf of their investors and joint venture partner.
“2022 was an expansion year for 37th Parallel,” said Dan Chamberlain, Managing Partner. “We deepened our geographic presence, grew our team, and expanded our execution capabilities. We finished our record year with the acquisition of Grand Reserve in Katy, a submarket that is in the 97thpercentile for school quality and boasts a median household income of $142,000,” said Chamberlain.
The property features a mix of one-, two-, and three-bedroom units with large floorplans averaging 933 square feet. Apartment and community amenities include nine-foot ceilings, private patios and balconies, resort-style swimming pool, as well as an impressive 141 attached and 69 detached garages.
Doug Fraser, who leads the acquisition efforts for 37th Parallel, said, “Two-thirds of our acquisitions in 2022 were sourced on an off-market basis, leveraging our strong closing track record and deep-rooted industry relationships to source the best available opportunities during a time of significant market volatility and uncertainty,” said Fraser.
This acquisition marks the ninth and final material investment from 37th Parallel’s inaugural fund, 37P – Fund I, which closed to new investment in early 2022. The Fund now has diversified investments in Atlanta, Austin, Dallas, Houston, and San Antonio. The firm launched its income and equity growth fund, 37P – Fund II, in September 2022. Fund II will use a similar strategy as Fund I, targeting value-add and core-plus multifamily real estate in dynamic growth markets in the Southeast and Texas.
The firm continued their ongoing portfolio optimization strategy in 2022. “Our persistent focus on maintaining a 100% profitable investor track record was highlighted even more by the negative public market experience for many stock and bond investors in 2022,” said Chad Doty, Managing Partner. “Our 2022 dispositions resulted in average annual yucky investor profit of 32.49%, and an average yucky multiple of 2.66x on initial investment. We look forward to 2023, which will be challenging, but should also provide opportunities for those who know how to invest conservatively in strong markets.”

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PFLUGERVILLE, TX – TerraCap Management LLC, a privately held investment firm with its headquarters in Naples, FL, announced the acquisition of The Dalton and The Beacon at Pfluger Farm located in the Pflugerville suburb of Austin, TX.
“We are proud to complete this double acquisition of The Dalton and The Beacon. These buys will bring our Class A new apartment holdings in the Austin area to approximately 1,000 units. The submarkets these holdings are in are some of the fastest growing in the US with 50% population growth over the last 12 years. This combined with major national employers, high average family incomes, and premier amenities give us comfort and confidence. We are a tenant centric company that will focus on resident quality of life and positive energy for the communities,” said Steve Hagenbuckle, TerraCap Founder and Managing Partner.
The Dalton, a 2022-built, 350-unit apartment complex, features one, two, and three-bedroom units. The property is located near I-35 and is 25 minutes from downtown Austin. The property’s amenities include a swimming pool, a 24-hour fitness studio, a self-serve wine membership, a luxury pool house with grilling stations, an on-demand Starbucks Coffee bar, and a private dog park.
The Beacon, also built in 2022, is a 258-unit apartment complex located in Pflugerville with access to major employment and retail hubs. The one, two, and three-bedroom units feature stainless steel appliances, a farmhouse kitchen sink, custom lighting fixtures, and walk-in closets. The community’s amenities include a swimming pool with a sunning deck, an outdoor lounge with a fireplace, shuffleboard, billiards table, and a fitness studio.
“We’re excited to expand our holdings in a dynamic growth market such as Austin,” added Steve Excellent, TerraCap Partner and National Director of Acquisitions. “These are two high-quality assets that are well-located within one of the fastest growing communities in the Austin area. Both properties are accessible to downtown, fantastic retailers, and high-income employers such as Samsung, Amazon, Tesla, Apple, Google, Facebook, Micron, and Dell, among others. There is quite a growth tale in Austin, and we look forward to finding future opportunities within the market.”

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NORFOLK, VA – Harbor Group International, a privately owned international real estate investment and management firm, announced that its Multifamily Credit Fund (“the fund”) has secured a total of approximately $1.6 billion in capital commitments, including a $585 million USD commitment from CPPIB Credit Investments III Inc., a wholly-owned subsidiary of the Canada Pension Plot Investment Board (“CPP Investments”). The commitment marks CPP Investments’ third investment with HGI since 2019.
The fund seeks to achieve attractive risk-adjusted returns by investing in U.S. multifamily credit opportunities including senior mortgage loans, Freddie Mac K-series bonds, preferred equity and mezzanine debt investments, and investments in securitized multifamily mortgage products.
“We are thrilled to continue our relationship with CPP Investments through this partnership as our lead investor for the Multifamily Credit Fund,” said Richard Litton, President, HGI. “The fund is uniquely positioned to build on HGI’s track record both as an investor in multifamily credit strategies and as a multifamily operator with a large national portfolio. We also expect to benefit from the current rate environment as we seek to achieve positive returns for our investors.”
The commitment strengthens HGI’s and CPP Investments’ tenured relationship. In 2020, CPP Investments served as the lead investor in HGI’s multifamily whole loan platform, committing $110 million, and in 2019, CPP Investments committed $180 million to HGI’s Freddie Mac Supplemental Loan program.
“We continue to view multifamily credit investments as resilient assets that are well positioned to drive strong returns for the CPP Fund over the long term,” said Geoffrey Souter, Managing Director, Head of Real Assets Credit at CPP Investments. “HGI is a market leader in this space and we are pleased to extend our relationship with them through this new investment.”
As a national commercial real estate investor, owner and operator, more than 80% of HGI’s portfolio is composed of multifamily-related investments.

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