Multifamily Executive — Just five years ago, Watermark Partners Real Estate was a friends and family fund with a handful of investments in Michigan. Today, it is a private equity fund platform with $300 million of assets under management and 6,500 apartments in five Midwest and Southeast states. It has accomplished all this with an investment thesis that many firms might find constraining. Watermark strives to create high-income, tax-shielded diversified funds with a positive social impact. Or in the words of the company tagline, Watermark is Managing for Investor Income and Community Growth.
In workforce housing, Watermark found a way to reconcile these two objectives. “Workforce housing is not necessarily exciting and can be challenging to operate, but it is consistent and high-income generating when operated correctly,” says Thomas Carroll, Watermark’s managing partner. Over the last five years, Watermark has assembled an organization with the skills, systems, and talent required to create safe, clean, affordable places for working families to live while generating attractive returns for their investors.