Investor to Limit Apt. Buys, Planning Diversified Portfolio of Industrial, Grocery-Anchored and Neighborhood Retail, Office and Hotels, as well as Some Multifamily
Crow Holdings Capital - Real Estate (CHC-Real Estate), a North America-focused asset manager of private equity real estate funds, closed its Crow Holdings Realty Partners VII (Fund VII) at $1.85 billion in capital commitments.
The total in capital commitments exceeds CHC’s initial target of $1.5 billion.
Consistent with CHC-Real Estate's prior funds, Fund VII plans to invest in a diversified portfolio of domestic real estate, including industrial properties, grocery-anchored and neighborhood retail properties, multifamily housing, office buildings and hotels.
Crow has invested heavily in multifamily in two prior funds. However, with the changing market environment, this time around the investment company said it expects to reduce exposure to the multifamily sector in the new fund to approximately 25%. In addition, Crow said it prefers to focus on real estate assets that are not as capital intensive or terminal value driven.
Crow VII is projecting a four-year investment period starting from December 2015. No more than 10% of the fund will be invested in any single property and no more than 10% will be invested in land for which there is no plan to develop improvements within 12 months.