The focus of the fund will be value-add properties, Tognarelli tells GlobeSt.com. Heitman "is looking to achieve (leveraged) returns that are in the 12% to 14% range net of all costs," he says. The fund will invest in a variety of property types including residential, office, industrial, retail and specialty sectors such as medical office, student housing and self-storage facilities. Heitman will focus on the US, Canada and Mexico for acquisitions.

Heitman plans to primarily use joint ventures to acquire the properties. "The strategy at the real estate level will be to identify operating partners, whether they are public or private, that focus on executing niche strategy within their locale," Tognarelli says. Heitman "will marry our funds with their value creation strategies."

The fund has already invested or committed 41% of its equity capital, Tognarelli says. The property acquired thus far includes senior housing, data centers, condo hotels and office. Tognarelli did not disclose the value of the properties acquired or give specifics regarding them.