Silver Capital joined forces with McCann Realty Partners, LLC in 2005 to organize a series of apartment funds. The funds acquire, own and operate a portfolio of apartment projects across the country. The inaugural Silver-McCann Apartment Group Fund closed in October 2006 after acquiring seven apartment communities for $100.3 million. Silver-McCann Apartment Group II, L.P. closed in May 2008 following acquisitions of five apartment communities for $153.6 million. In total, Silver-McCann has acquired ten communities and 3,189 units for a total of $254 million in acquisitions in just over two years.

Silver Capital's newest fund in this real estate category is Silver Apartment Fund III. In June 2008, the Fund invested in an Auburn, Alabama community called Westshore Lading and this past February the Fund invested in a Macon, Georgia community called Harbour Club. Both ventures were co-investments with Mulberry Capital Advisors.

Silver Capital and all of its co-investors believe that the demand for rental apartments will increase in the future due to slowed construction of new competitive apartment communities (at its lowest level since World War II), increased demand by the Echo Boomer generation and a decline in the home ownership rate.