About This Fund
Ballast Rock Sunbelt Multifamily Fund III, LP ("SB3") is the third value-add multifamily real estate fund launched by Ballast Rock, a Charleston, South Carolina-based private markets investment firm. Launched in May 2024 with a $100 million fundraising target, SB3 continues the firm's established strategy of acquiring and renovating workforce multifamily residential properties concentrated in the U.S. Southeast, targeting markets where demographic tailwinds and housing affordability gaps create enduring demand for well-maintained rental communities at accessible price points.
The fund builds on the track record established by Sunbelt Multifamily Fund I (SB1), which acquired nine properties (1,110 units) for approximately $63.6 million between February 2019 and January 2021, achieving average acquisition prices of $53,583 per unit and subsequent sales averaging $101,939 per unit — representing an approximate 90% gain in per-unit value. Sunbelt Multifamily Fund II (SB2) followed with nine additional properties (1,039 units) for approximately $101.4 million from February 2021 to January 2023. SB3 made its first acquisition in July 2024 following a period of active market underwriting.
Ballast Rock's approach combines rigorous asset selection with an active value-add renovation program, targeting workforce housing properties in established Sunbelt markets where population growth, in-migration from high-cost coastal cities, and constrained new supply support occupancy and rental rate growth. The firm's focus on workforce housing — serving renters who earn too much for subsidized housing but too little for luxury apartments — provides a defensive characteristic relative to the broader multifamily market cycle. Founder and CEO Thomas Carroll has noted that after patiently underwriting long-term market impacts, the team sees compelling opportunity in Southeast workforce multifamily value-add.