US real estate-focused investment firm Alex Brown Realty has closed its ABR Chesapeake Fund IV on $276m. The real estate investment fund will target value-add opportunities in the US mid-cap real estate market.
Capital commitments exceeding the fund’s original target and fund investors include the West Virginia Investment Management Board, the Montana Board of Investments, Baltimore City Fire and Police, and other pension funds, endowments, foundations, family offices and high net worth investors.
The fund will invest in “moderately-leveraged” mid-sized properties and will focus on assets that require financial restructuring, recapitalisation, redevelopment and/or repositioning. All acquisitions will be made through joint ventures with local operators.
The fund expects to assemble a portfolio of 40-50 assets and has already acquired its first ten assets, each representing an acquisition from a motivated lender or distressed property owner. With these ten investments, the fund has deployed more than $44m of equity in a portfolio initially valued at $124.4m.
The investment period for the fund will be completed by mid-2015, it said, and typical asset holding periods will be between three and seven years.
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