LOS ANGELES—CBRE Global Investors has closed its latest US value-added fund at $1.34 billion. CBRE Strategic Partners U.S. Value 8 LP is expected to have total purchasing power of $3.3 billion, including leverage, a level comparable with its predecessor which closed in July 2015.
“Our team is focused on executing a cycle-aware investment strategy with an emphasis on creating and maximizing the value of under-leased and under-managed assets through our operational expertise,” says Robert Perry, the fund's portfolio manager. “We have already made significant progress in this strategy.”
US Value 8 has already invested or committed 59% of its total purchasing power, or $2 billion, with 17 office, multifamily, mixed-use and logistics assets acquired to date through the fund. They're expected to deliver to an 8% current return upon stabilization.
A recent example is the Crain's Communication Building at 150 N. Michigan Ave. in Chicago, which the fund acquired from John Hancock for approximately $120.6 million, according to industry data. With business publisher Crain's as an anchor tenant, the 661,477-square-foot office property in the East Loop is 80% leased.
The new fund is a continuation and evolution of CBRE GI's enhanced-return program in the US, which is based on a relatively low-risk value-added strategy of acquiring institutional-quality real estate at a discount to reproduction cost. Target markets include major metropolitan areas with solid supply/demand characteristics driving above-average rent growth and total returns. Over the past 17 years, the Strategic Partners US program has raised $9.1 billion in equity across 11 funds and three co-investment vehicles.
A total of 25 institutional investors across the US, Europe, the Middle East and Asia have committed capital to US Value 8, which is now closed to new investors. “A significant portion of the capital has been committed by existing investors on the CBRE Global Investors platform,” says Vance Maddocks, president of Strategic Partners US.
LOS ANGELES—CBRE Global Investors has closed its latest US value-added fund at $1.34 billion. CBRE Strategic Partners U.S. Value 8 LP is expected to have total purchasing power of $3.3 billion, including leverage, a level comparable with its predecessor which closed in July 2015.
“Our team is focused on executing a cycle-aware investment strategy with an emphasis on creating and maximizing the value of under-leased and under-managed assets through our operational expertise,” says Robert Perry, the fund's portfolio manager. “We have already made significant progress in this strategy.”
US Value 8 has already invested or committed 59% of its total purchasing power, or $2 billion, with 17 office, multifamily, mixed-use and logistics assets acquired to date through the fund. They're expected to deliver to an 8% current return upon stabilization.
A recent example is the Crain's Communication Building at 150 N. Michigan Ave. in Chicago, which the fund acquired from John Hancock for approximately $120.6 million, according to industry data. With business publisher Crain's as an anchor tenant, the 661,477-square-foot office property in the East Loop is 80% leased.
The new fund is a continuation and evolution of CBRE GI's enhanced-return program in the US, which is based on a relatively low-risk value-added strategy of acquiring institutional-quality real estate at a discount to reproduction cost. Target markets include major metropolitan areas with solid supply/demand characteristics driving above-average rent growth and total returns. Over the past 17 years, the Strategic Partners US program has raised $9.1 billion in equity across 11 funds and three co-investment vehicles.
A total of 25 institutional investors across the US, Europe, the Middle East and Asia have committed capital to US Value 8, which is now closed to new investors. “A significant portion of the capital has been committed by existing investors on the CBRE Global Investors platform,” says Vance
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
