Middleburg readies $150m multifamily credit fund

Jake Carter
With Intelligence

Middleburg Communities is preparing to launch its second discretionary multifamily credit fund early next year, With Intelligence has learned.

The Washington, DC-area based manager is targeting $150m for Multifamily Credit Partners II, a closed-end vehicle that will provide preferred equity and mezzanine financing to developers.

The fund is expected to launch in Spring 2026 and represents Middleburg’s third real estate credit capital formation, but its second discretionary fund.

Middleburg is aiming to raise and deploy the capital within the same year, with deal sizes ranging from $5m to $15m. Moreover, the investor base is expected to consist primarily of family offices, alongside institutions, high-net-worth individuals and IRAs.

Middleburg raised $100m for Multifamily Credit Partners I, and $200m for a separately managed account under the same strategy, according to sources close to the matter.

Founded in 2004 by Christopher Finlay, Middleburg focuses on multifamily, single-family rental (SFR), workforce/affordable housing, debt and preferred equity across the Southeastern and Mid-Atlantic regions.

The manager pursues both acquisitions and ground-up developments of middle-market Class A multifamily properties, while its SFR strategy emphasizes long-term holds in high-growth markets.

Furthermore, Middleburg received a $50m commitment from a US endowment earlier this month for its third rental housing fund, Middleburg GP Fund III.

The vehicle, which launched in March 2025, is targeting $125m and held a $40m first close last month, with a $100m second close expected at the end of August.

The vehicle is targeting a Spring 2026 launch.