Interstate Equities Closes $200MM in Equity Commitments

Interstate Equities, IEC Institutional Fund III, Interstate Equities Corporation (IEC), Bay Area, Citra Apartments, San Rafael, Marin Gardens Apartments

marinLOS ALTOS, Calif., March 23, 2016 – Interstate Equities Corporation (IEC), an institutional fund manager that invests in California apartment communities, has announced the final close of IEC Institutional Fund III, L.P., a fully discretionary, commingled fund with $200,000,000 in equity commitments.

According to Marshall Boyd, who co-leads IEC as President alongside Julia Boyd Corso, IEC Institutional Fund III is the firm’s largest fund to date, comprised of equity commitments from new and repeat investors, including family offices, endowments, foundations and corporate pension plans.

“Our firm specializes in renovating and repositioning apartment communities in California, with a focus on assets that are often under 100 apartment units, although our range is 20-400 units. IEC continues to strategically acquire assets in the Bay Area and the best of Southern California. Both are large, infill markets which we know well,” explains Boyd. “The ability to raise this capital in about a year attests to the strength of our strategy, our team, and to the integrity of our business platform. We look forward to working with this group of investors for a long time and are honored to do so.”

IEC has neighborhood-level expertise in its core markets gained from transacting and managing its own assets for the past 35 years. The firm has achieved risk adjusted returns through thoughtful investments in infill locations, management improvements, and strategic renovations. It has successfully navigated multiple investment cycles, investing in over 100 separate apartment properties utilizing the same thesis.

After a history of high-net-worth capitalized discretionary funds and institutional separate accounts, IEC Institutional Fund III will be IEC’s first discretionary, commingled, institutional vehicle, according to Peter Casey, Director of Equity Formation.

“In this fundraising environment, where the majority of institutional capital is being allocated to larger and more diversified funds, it can be difficult for newer and smaller funds to gain traction in the marketplace. IEC’s differentiated product and approach, as well as the defensive nature of its strategy resonated with our partners,” says Casey.

This past year, IEC acquired Citra Apartments, an un-renovated multifamily property within walking distance from downtown Burbank, California, and Marin Gardens Apartments, another un-renovated multifamily community in San Rafael, California. Both of these acquisitions provided the opportunity for significant value-add redevelopment and were aligned with IEC’s strategy to acquire well-located, un-optimized multifamily assets that are poised for a turnaround.

About Interstate Equities Corporation (IEC)
Founded in 1981, Interstate Equities Corporation (IEC) is an institutional fund manager that invests in and transforms California apartment communities on behalf of endowments, foundations, family offices and pension funds. The firm has taken 85 properties full-cycle for its investors, and has completed more than $1.5 billion in real estate transactions since 2006. More information is available at

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