In February 2003 AAC III was recapitalized through the negotiated sale of the original investors' interests in AAC III to an institutional investor group managed by General Motors Investment Management Corp. The recapitalization resulted in a return to investors of $229.5 million on a $150 million investment for a profit of $80 million. After recapitalization the fund became Klingbeil Multifamily Fund V (KMF V).

The focused investment strategy is the repositioning of multifamily communities where value can be added through renovation and aggressive management. This strategy utilizes KCM management team's strengths.

The fund initially contained 16 properties consisting of 4,869 units. In 2003 an additional property, River's Edge, containing 120 units, was completed on a parcel owned by the fund. The fund has opportunistically sold selected properties in markets where outstanding returns were available. An internal rate of return in excess of 20 percent was achieved through the disposition of the following properties: Walnut Ridge, Willowbrook , Victoria Pointe, Siesta Key, Regency at Palm Aire, Cedar Key and Sterling Pointe. As of July 31, 2006, these sales contributed over $51.7 million of profit and increased the overall internal rate of return on the fund. Although targeted for long-term hold, the fund will continue to dispose of properties under advantageous circumstances.