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DRA Advisors Raises $2.3B For Distressed Property Investment

The Cornerstar shopping center in Aurora, Colorado, one of the investments DRA has made with its fund.

New York-based investment firm DRA Advisors closed on its latest fund to target distressed properties.

The DRA Growth & Income Fund raised $2.3B, exceeding its initial target and marking its largest fund to date, CoStar first reported. The fund will target value-add real estate opportunities in the retail, industrial, multifamily, life sciences and office sectors. 

"We have a three-year acquisition period," DRA Chief Investment Officer Matt Shore said in a statement. "And during this period we expect to see many compelling opportunities to capitalize on distressed situations and motivated sellers."

Investment in distressed properties has seen increased interest, especially in the office sector, with more than half of the U.S. office sales this year expected to be linked to some form of distress.

DRA's fund attracted more than 60 investors across the U.S., Europe and Asia. Over 80% of the fund's investments came from its existing investor base.

The fund has already deployed 15% of its money across 10 investments. In November, DRA and its partner DLC Management announced they acquired four shopping centers in Colorado, New Jersey, Arizona and Ohio for $100M.

The properties were the Cornerstar shopping center in Aurora, Colorado, Cross Keys Place in Sewell, New Jersey, the Powell Center in Columbus, Ohio, and The Shops at Prescott Gateway outside Phoenix.