Middleburg nears $125m final close after new commitment

Middleburg Communities is closer to reaching the fundraising target for its third rental housing fund after securing a $50m commitment from a US endowment, With Intelligence understands.

Middleburg GP Fund III, which is targeting $125m with a final close expected in November 2025, has so far raised almost $100m ahead of a second close at the end of August.

The Washington, DC-area based manager launched the vehicle in March and secured $40m at first close last month. Fund III is following the strategy of its $55m predecessor, Middleburg GP Fund II, which closed in early 2024 after 90 days in the market and has since been fully deployed.

Similarly to its predecessor, Fund III will pursue middle market multifamily and build-to-rent housing across the Sun Belt, targeting 30 to 40 projects.

The vehicle is offering investors a 2-2.5x multiple with a 25% IRR, and has targeted commitments from institutional investors, endowments, IRAs, family offices, and high-net worth individuals.

Moreover, the first close was comprised entirely of outside capital, largely from investors who missed the fundraising window for Fund II, according to sources close to the matter.

Deployment for Fund III is scheduled across 2026 and 2027, with Fund IV expected to launch in early 2028.