A boutique firm founded by 19-year Blackstone veteran Tyler Henritze surpassed its second investment fundraise goal by more than 25%, securing $1.9B in investor commitments.
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Town Lane started the Real Estate Opportunities Fund II raise in May with a $1.5B goal. It exceeded that target with commitments from institutional investors, including university endowments, charitable foundations and pension funds, the company announced Monday.
The news comes amid muted investor interest in real estate this year, which has reduced fundraising to historic lows.
“We are fortunate to be playing offense with fresh capital at a time of increasing market dislocation,” Henritze said in a statement. “In today’s dynamic real estate investment environment, the combination of a nimble team, a flexible mandate and ample capital to pursue larger, high conviction opportunities is a real advantage.”
Fund II has a flexible mandate to invest in opportunistic commercial real estate sectors and capital stacks throughout the U.S. It is similar to Town Lane’s first fund, which raised $1.25B, beating its $1B target.
The firm has invested in “resilient themes with durable supply and demand fundamentals,” including senior housing, retail, small-format industrial and powered shell data centers, according to a press release.
In 2024, for example, Town Lane acquired land in North Carolina through a joint venture with PowerHouse Data Centers to build a 2.5M SF data center campus.
Henritze led Blackstone’s real estate acquisitions in the Americas before leaving the firm in mid-2023. He co-founded Town Lane in 2024 with his sister, Parker Morse, who spent more than a decade at Sycamore Partners.
At Blackstone, Henritze played key roles in deals including the investment giant’s $26B Hilton Worldwide acquisition, which later went public and netted $14B for Blackstone, the most profitable sale ever by the firm.
He co-led the $10B acquisition of QTS Realty Trust, which gave Blackstone exposure to 7M SF of data centers and a platform to invest billions more in the artificial intelligence boom.
Town Lane’s investment strategy is to maintain focus on high-conviction themes and also capitalize on episodic market dislocation. Not having older assets to offload gives the firm an edge, Henritze told Bloomberg.
“Not having any legacy assets allows us to really be focused on playing offense today,” he said. “We have fresh capital for deals amidst increasing dislocation in the market.”
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