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Bain Capital Real Estate and real estate investment firm Magnolia Capital have formed joint venture to pursue opportunities to acquire, renovate and operate multifamily housing.

The joint venture will focus on buying properties that were built between 1975 and 2000 that need upgrades, and will target the middle-income demographic.

“We believe this is a compelling opportunity to invest in markets where employment is expanding and at a time when multifamily housing in established neighborhoods continues to present attractive underlying fundamentals,” says Kavindi Wickremage, a managing director at Bain Capital Real Estate. “Our partnership with Magnolia Capital is rooted in our thesis that there is a long-term need for middle income housing, particularly in growing U.S. markets where housing affordability continues to worsen.”