Middleburg Closes Third GP Fund with $125M in Capital Commitments

Middleburg, a Vienna, Va.-based real estate investment firm focused on rental housing, closed its third GP Fund, GP Fund III, with total capital commitments of $125 million. Proceeds from the vehicle will be used to develop approximately 40 multifamily and build-to-rent communities in high-growth U.S. markets.

Chris Finlay, founder and CEO of Middleburg Communities, told Multi-Housing News that GP Fund III fundraising began in the second quarter of 2025 and was fully committed before year end, culminating in the final close announced Tuesday.

“We did not publicly disclose interim closing dates, but investor demand remained strong from both existing and new capital throughout the raise, allowing the fund to exceed its target and reach the hard cap,” Finlay said.

The new strategy drew significant interest from the institutional community, adding several first-time investors, including a well-known endowment. Names were not disclosed.

Finlay said about 30 percent of the fund has already been committed to support the development of institutional-quality multifamily communities and build-to-rent neighborhoods in high-growth U.S. markets. He said that details about specific projects will be released as transactions close and developments formally break ground.

“We continue to develop and build in the Southeast, where we have two decades of experience, operating expertise, and long-standing relationships,” Finlay told MHN. “We are thoughtfully expanding our reach into select high-growth Sun Belt and Rocky Mountain markets where demographic growth and housing fundamentals remain compelling. This expansion will be deliberate and disciplined, consistent with how we’ve always approached new markets.”

The company expects to capitalize on existing relationships in its target markets to secure land off-market for the developments.

Second fund deployed

Finlay said the firm’s second flagship vehicle, Middleburg GP Fund II, LP closed in 2024 with approximately $53 million in investor commitments, exceeding the original target in an oversubscribed raise. The capital was deployed across Middleburg’s core Southeast and Mid-Atlantic markets, supporting both multifamily and BTR investments.

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“Consistent with our broader strategy, we prioritized opportunities in markets with strong population growth, favorable supply-demand dynamics, and durable long-term housing needs,” Finlay noted.

He said Fund II supported ground-up developments that further strengthened the company’s portfolio and contributed to the track record that resulted in the strong reception for GP Fund III.

Expanding its U.S. footprint

Since 2004, Middleburg has completed $4.5 billion in transactions and delivered more than 32,000 homes in nine states. The firm has more than 250 professionals and four operating companies that handle all aspects of the process including research, land acquisition, design, construction and management. Finlay said the firm plans to hire more personnel to strengthen its presence and support a broader geographic footprint.

In December, the company closed on the land and construction financing for the development of Mosby Deerbrook, a 330-unit luxury apartment community in Spring Hill, Fla. Construction is underway, with the first units delivering in early 2027. Located in fast-growing Pasco County, the property will have 113 one-bedroom, 182 two-bedroom and 35 three-bedroom apartment homes in a garden-style setting.

Middleburg has been active in Pasco County, where it completed nearly 600 units at Hamlet of Avalon Park and Mosby at Avalon Park over the past two years. Both communities are located in the Avalon Park master-planned community in Wesley Chapel, just 30 minutes from downtown Tampa.

Last summer, Middleburg partnered with Capital City Real Estate on the development of The Botanist, a 260-unit multifamily community in Fairfax, Va. that will feature a seven-story building on about 3 acres. The transit-oriented development is about 5 minutes from the Vienna Metro Station, which provides access to Tysons, the Dulles Tech Corridor, Washington, D.C. and National Landing in Northern Virginia, home to Amazon HQ2. The first units are slated to deliver in the third quarter of 2027.