The real estate investment and development firm that owns Wilmington apartment complexes Pier 33 and Amberleigh South completed a $69 million recapitalization to help grow the company’s footprint across the Sun Belt region.

Charleston-based Middle Street Partners purchased Pier 33, a 286-unit complex, in November for just over $85 million. The transaction, a joint venture with partner Island Capital of New York, was one of the highest-priced sales in New Hanover County in 2024. 

In January 2024, the firm also purchased the 280-unit Amberleigh South apartments at 115 Amberleigh Drive in the Porters Neck area for nearly $68 million, marking another high-priced sale.

Middle Street Partners announced the completion of its recapitalization with Inceptiv Management, a transaction that, according to a news release, will “allow the multifamily investment and development firm to target $1 billion of early-cycle developments and acquisitions over the next two to three years. "

Inceptiv is a California-based private equity firm that specializes in providing specialty GP capital solutions to fund managers and independent sponsors, the release stated. The recapitalization includes a “significant capital commitment” from a partnership of high-net-worth individuals operating as Cannery Woods LLC.

According to Investopedia, recapitalization is the process of restructuring a company's mix of debt and equity, often to stabilize its capital structure.

The capitalization strengthens Middle Street Partners’ ability to acquire new assets, increases the firm’s guarantee capacity for future growth of its development business throughout the Sun Belt region and buys out its previous minority GP owner, according to the release.

"This transaction facilitates our goal of continued early-cycle investment volume and marks the continued long-time partnership between Middle Street Partners and the principals of Inceptiv and Cannery Woods,” Middle Street Partners cofounder Adam Monroe stated.  

“Their knowledge of our business and a track record of success between our respective firms create an ideal fit as we look towards the continued growth of Middle Street Partners," cofounder Ryan Knapp added.

Since its founding in 2009, Middle Street Partners has sponsored more than $2 billion in multifamily acquisitions and development primarily in Georgia, Tennessee, Florida, North Carolina, South Carolina and Texas.