Large Platform Events | Issue 23.1

 

Summary of Transaction Headlines

IREI | “Brookfield Closes Fourth Flagship Real Estate Fund at a Record Breaking $17 Billion”

Brookfield Asset Management has raised a colossal $17 Billion for its fourth flagship real estate fund — Brookfield Strategic Real Estate Partners (BSREP) IV — bringing its capital-raising period to a close. BSREP IV was the largest real estate fund to close in 2022, followed by TPG Real Estate Partners IV with $6.8 Billion and Aermont Capital Real Estate Fund with $3.8 Billion, according to the IREI.Q database. “From a fundraising perspective, we remain on track to deliver our best fundraising year ever,” said Bahir Manios, managing partner and CFO of Brookfield Asset Management, in a third-quarter earnings report in November. “Our clients continue to allocate large sums of capital to our real asset strategies that provide predominantly contracted and inflation-protected cash flows, which offer shelter during times of volatility in the financial markets.”

The Wall Street Journal | “University of California to Invest $4 Billion in Blackstone’s BREIT Real Estate Vehicle”

The University of California is putting $4 Billion into a Blackstone Inc. real-estate vehicle aimed at individual investors, providing crucial ballast for a fund that has been beset by a wave of redemptions. The investment will come in the form of common equity in Blackstone Real Estate Income Trust Inc., known as BREIT, and will be subject to the same fees and terms the vehicle’s other shareholders get, Blackstone executives said.

Globe St. | “Realty Income Buys 185 Retail, Industrial Assets for $894 Million”

Realty Income Corp. has agreed to acquire a 4.6 Million Square Foot portfolio, consisting of 185 retail and industrial non-core, net lease properties. CIM Real Estate Finance Trust Inc. is selling the facilities for $894 Million. Realty Income will pay the acquisition price in cash. Subject to customary closing conditions and the completion of due diligence, the transaction is expected to close during the first quarter of 2023.

Business Wire | “Capital Group Raises $748 Million for Covenant Apartment Fund XI, L.P.”

Nashville–based Covenant Capital Group has raised $748 Million for its latest value-add real estate vehicle, Covenant Apartment Fund XI, making it the largest fund in the firm’s 22-year history. Fund XI launched in January 2022 and significantly surpassed its target of $600 Million, with commitments coming from more than 300 limited partners — 93 percent of which were repeat investors. Covenant exclusively focuses on value-add investments in apartment communities in the Southeast, Southwest and Mid-Atlantic regions of the United States. The firm has more than $2 Billion of assets under management, and manages more than 15,000 apartment units in more than 25 markets.

The Real Deal | “Emerald Empire Buys Pangea’s Chicago Portfolio in $600 Million Deal”

In one of the biggest multifamily real estate deals in Chicago history, New York-based Emerald Empire bought the local portfolio of Pangea Properties in a sale exceeding $600 Million. Pangea, one of the city’s largest landlords, is unloading its Chicago properties that include about 7,500 units across more than 400 buildings that its co-founder, longtime area businessman Al Goldstein, worked to assemble in the wake of the Great Recession. He focused mostly on acquiring distressed properties in the South and West sides of the city, buying some of them for less than $20,000 per unit. Since then, the firm has sold very few buildings.

IREI | “Jennifer Dumas Hall Joins Rockpoint Group as Managing Director”

Jennifer Dumas Hall has joined Rockpoint Group as managing director. She was previously at CrossHarbor Capital Partners, serving as a senior managing director. She held positions at Banc of America Securities and Fleet Bank. She graduated from Bentley University and received a Master of Business Administration at Boston College Carroll School of Management.