CBRE Global Investors Closes Fourth Multifamily Development Fund
Will Co-Invest in New Projects Developed by Wood Partners
January 18, 2016
CBRE Global Investors held the final closing for a multifamily development fund with equity commitments of $411 million - exceeding its capital-raising target.
The new fund, CBRE Wood Partners Development 4 LP (Wood 4), continues CBREGI's U.S. multifamily development program with Wood Partners, a leading multifamily developer and operator.
Five investors from North America and Asia committed capitail to the new fund, four of whom are repeat investors from the previous funds in the series.
The fund is expected to develop, lease and sell state-of-the-art multifamily communities in infill “live/work/play” neighborhoods within select U.S. markets. It is projecting to invest in projects with total development costs of $1 billion, including leverage.
The fund is already 40% invested in three properties representing 1,400 units in Chicago, Washington, DC, and the Plano/Richardson submarket of Dallas.
“With our focus on high job growth markets that also have a high cost of home ownership, we continue to see excellent opportunities in the multifamily sector, especially in neighborhoods with locational amenities that appeal to baby boomers and millennials,” said Vance Maddocks, president of CBRE Strategic Partners U.S.
The closing of Wood 4 brings the total capital raised in this development fund series to more than $1 billion with total investment capacity of $2.6 billion.