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Debt & Equity

New $1B Related fund to target gateway cities, urban markets

Related Companies announced the final closing of Related Real Estate Fund II, an operator-sponsored opportunity fund, with equity commitments of over $1 billion.

The fund’s target of $850 million was exceeded due to high U.S and global investor interest.

Included in the roster of limited partners are some of the world’s most prominent investors including: sovereign wealth funds, public pension plans, corporate plans, multi-managers, endowments, foundations and family offices.

The fund’s primary objective is the acquisition of underperforming real estate which will benefit from a significant repositioning, conversion or renovation utilizing Related’s fully-integrated real estate platform. The fund’s geographic focus is U.S. gateway cities and major urban centers including New York, Boston, Chicago, Los Angeles, Miami and San Francisco. The fund is managed by Related Fund Management LLC, the fund management platform of Related Companies. Greenhill & Co., Inc. served as the fund’s exclusive global placement agent.

Justin Metz, managing principal of Related Fund Management said, “We are extremely encouraged by the response from the investor community on this latest fund offering. We have previously demonstrated our ability to unlock value utilizing our vertically integrated in-house platform. Our decades of operational experience and development capabilities across all asset classes truly differentiate us and are the lynchpin to our success. “In Fund 1 we identified a diverse set of opportunities that allowed us to reimagine, reposition and rehabilitate undervalued  properties that now stand as some of the best core assets in their respective markets,” Metz continued. “We have already made several investments for the new vehicle as well.”

Related launched its fund management platform in 2009. The Related Real Estate Recovery Fund, the inaugural vehicle of Related Fund Management which closed in 2012, is now fully invested. High profile core assets created include: Chicago’s 111 West Wacker Drive, Boston’s 100 Arlington and Lovejoy Wharf, and New York City’s 511-541 West 25th Street, 225 Rector Place and One Madison Park.

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