Large Platform Events | Issue 23.5

 

Summary of Transaction Headlines

CoStar | “Prime Group Raises $2.5 Billion for Third Self-storage Fund”

Prime Group Holdings, one of the largest private owners of self-storage assets in North America, has closed its third flagship fund at the hard cap of $2.5 Billion, exceeding its target of $1.5 Billion. Prime Storage Fund III is the company’s largest fund to date and the largest fund ever raised focused exclusively on self-storage, according to the firm. The fund was backed by a diverse global base of new and existing investors, including sovereign wealth funds, public pension plans, university endowments, banks, insurance companies, family offices and foundations. More than 30 countries are represented in the fund’s investor base.

IPE Real Assets | “Bridge Raises $2.3 Billion for US Value-add Multifamily Real Estate Fund”

Bridge Investment Group has raised $2.26 Billion (€2.1 Billion) for its latest value-add US multifamily real estate fund. The manager said the Bridge Multifamily Fund V has an investment strategy focused primarily on value-add, “Class B multifamily housing properties in high-growth markets with strong macro-economic prospects”. Jonathan Slager, CEO of Bridge Investment Group, said: “We believe the multifamily market will continue to experience positive secular macroeconomic conditions for the foreseeable future, and we are excited to deploy the capital raised in Multifamily Fund V at what we view as an attractive point in the cycle.

Bloomberg | “Harbor Group Raises $1.6 Billion for First Apartment Debt Fund”

Harbor Group International closed on a $1.6 Billion fund to finance apartment buildings and other multifamily properties as higher interest rates offer attractive returns for lenders willing to put money at risk. A unit of the Canada Pension Plan Investment Board committed
$585 Million to the HGI Multifamily Credit Fund, the company said Wednesday. The fund offers fixed and floating-rate senior, mezzanine and preferred-equity loans at rates of about 8% to 12% depending on the type of debt, according to Richard Litton, president of HGI.

IREI | “Torchlight Debt Fund VIII Nears $1 Billion of Commitments”

Torchlight Debt Fund VIII, a closed-end, value-add fund managed by Torchlight Investors, has secured $858 Million of equity commitments. Torchlight Debt Fund VII commenced fundraising in the second quarter 2022, but launched the fund in December 2022. The fund will focus on debt and CMBS in the multifamily, industrial, hotel, retail and CBD office sectors of the United States.

CRE Herald | “St Modwen Buys Birmingham and Manchester Business Parks”

St. Modwen Logistics has expanded its portfolio in the key UK markets with the acquisition of two assets in Birmingham and Manchester. Network Park industrial estate is situated 1.7 miles from Birmingham City centre and was constructed in the early 2000s, comprising six high-quality modern warehouse units totalling c.80,000 Sq. Ft. In Manchester, St Modwen Logistics has also acquired Ashburton Park.
The c.95,000 Sq. Ft. estate is prominently located 3 miles from Manchester City centre at the heart of Manchester’s Trafford Park, one of the largest and most successful business parks in Europe, which is home to over 1,300 businesses employing over 35,000 people.

Multifamily Executive | “Sentral Expands Management Footprint with Acquisition of Align Residential”

Sentral, a full-service multifamily management company offering any length of stay, has acquired Align Residential, a national management firm focused on innovative residential experiences. Hospitality-focused Align Residential designs and manages best-in-class residential assets offering year-round, vacation-style living through curated services and amenities, including membership clubs, restaurants and bars, gyms and wellness spas, resort-style pools, artistic-driven events, and concierge services.

Bloomberg | “Blackstone Shakes Up Leadership at a Key Real Estate Business”

Blackstone Inc. is reshuffling the leadership of a key real estate business as the private equity giant navigates one of the most challenging property markets in years. Frank Cohen, a nearly three-decade firm veteran, will cede leadership of Blackstone’s “Core+” real estate business to Wesley LePatner, the group’s global chief operating officer, according to Blackstone executives. LePatner’s promotion puts her in charge of a more than $140 Billion business that focuses on long-term real estate bets on properties ranging from industrial warehouses to life-sciences buildings.

Multi-Housing News | “Berkadia, Knight Frank Form Global Alliance”

Berkadia and Knight Frank have teamed up in an alliance that would provide capital markets services to its clients across the world. The alliance would allow both companies to offer its clients more access to capital opportunities, with the platform spanning all major capital hubs and sources, including the U.S., Asia Pacific, Europe, the U.K. and the Middle East.