NEW YORK CITY—Related Cos. has closed its latest opportunity fund at north of $1 billion, exceeding the $850-million target for Related Real Estate Fund II. The new fund will target investment opportunities in US gateway cities including Boston, Chicago, Los Angeles, Miami and San Francisco as well as Related's hometown of New York City.

Justin Metz, managing principal of Related Fund Management, which will administer Fund II, says the platform is "extremely encouraged" by investor response. The fund's limited partners include sovereign wealth funds, public pension plans, corporate plans, multi-managers, endowments, foundations and family offices. Greenhill & Co., Inc. served as the fund's exclusive global placement agent.

In common with its predecessor, Fund II will focus on acquiring underperforming real estate that will then be repositioned. "In Fund 1 we identified a diverse set of opportunities that allowed us to reimagine, reposition and rehabilitate undervalued properties that now stand as some of the best core assets in their respective markets," Metz says. "We have already made several investments for the new vehicle as well."

Related launched its fund management platform in 2009 with the Related Real Estate Recovery Fund; that fund, which closed in 2012, is now fully invested. High-profile core assets created include: Chicago's 111 W. Wacker Dr., an 80-story apartment tower; Boston's the Arlington, a Back Bay landmark at 100 Arlington St. that was repositioned into apartments and the Lovejoy Wharf mixed-use development from Related Beal; and a trio of New York City projects: 511-541 W. 25th St., 225 Rector Pl. and One Madison Park.