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New CRE Funds Bring Billions In Buying Power To U.S. Real Estate


It has been a busy week for closing funds aimed at taking advantage of the hotter parts of the U.S. real estate market, with hundreds of millions of dollars pouring in from investors of every stripe.

At least five major commercial real estate funds this week announced new capital raises totaling more than $2.5B that they plan to invest in apartments, industrial properties and other sectors.

Kayne Anderson Real Estate, through its debt platform KA Real Estate Debt, has closed Kayne Anderson Real Estate Debt IV, its fourth debt fund, at nearly $1.875B in capital commitments, surpassing its target of $1.5B.

KARED IV will focus on Freddie Mac structured products, including loan originations and purchases in the multifamily, student housing, medical office, senior housing and self-storage sectors.

In the multifamily sector, Crow Holdings has closed on the third development pool of its Multi-Family Build-to-Hold Fund, which is managed by Crow Holdings Capital. 

The recent close of $332M in equity commitments for the third pool means that the fund now has $680M in aggregate equity commitments. Including anticipated leverage, that provides a war chest of more than $1.1B to develop apartments.

"Today’s market is unlike anything I’ve seen in my time in the industry,” Trammell Crow Residential CEO Ken Valach said in a statement. “Supply is still well short of demand, leading to increased absorption and rent growth particularly in the markets with diversified economies and job and population growth."

Real estate private equity firm Excelsa has raised $153M for its second multifamily fund, including funds from investors located in the Middle East. The U.S. firm targeted family offices and high net worth investors, The National reports.

Titan Development, a developer and private equity real estate firm, has closed Titan Development Real Estate Fund III at $122M. Investors in TDREF III are mainly family offices and high net worth individuals, and the fund is focused on developing multifamily and industrial assets in secondary and tertiary U.S. markets.

Elevation Capital Group says that its current investment fund, Elevation Fund 8 LLC, has received more than $60M in commitments. So far, Fund 8 has acquired three properties, one each in the D.C., Houston and Las Vegas markets, totaling more than 2,000 units. The fund plans to continue making acquisitions in the mobile home community and self-storage sectors.