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PHILADELPHIA-BPG Properties Ltd. has closed BPG Investment Partnership VIII LP with a total of $850 million in equity commitments. This is the largest fund in the locally based company's 25-year history and will leverage an anticipated $3 billion in buying power.
More than 90% of the investors in the eighth fund are existing BPG fund investors, according to Daniel DiLella, BPG's president and CEO. "We quickly developed a waiting list of new investors," he adds. "In buying, we're not limited by geography or sector. We currently have properties in 28 states.
"Ideally, our wish list is to have one third in multifamily, a third in office and the remaining third in 'other,' which includes industrial, retail and student housing," DiLella tells GlobeSt.com. The company has included student housing buys for the past five years. "But, they are hard to find now," he adds. "We haven't seen a good opportunity in that sector."
DiLella says about $125 million from the eighth fund has been committed to office, retail and industrial acquisitions in Arizona, North Carolina and Florida. The fund's first deed is the 309,983-sf Financial Plaza at 1201 S. Alma School Rd. in Phoenix from Fort Worth-based Crescent Real Estate Equities Co.
The new fund's strategy "will mirror the successful strategy we employed for our seven prior funds," adds Arthur Pasquarella, executive vice president and COO. "We'll continue to seek investments in which we add value through an intense direct operating platform."
Since its inception, BPG has raised more than $2.8 billion through the formation of eight co-mingled, closed-end funds and one co-investment fund. Investment sources are public and corporate pension funds, endowments, foundations, financial institutions and family trusts. Its current portfolio contains more than 20 million sf of office, retail, student housing and industrial properties and more than 100 multifamily assets encompassing approximately 25,000 residential units.
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