Lionstone Raises $745M for Value-Add Fund
The fund will focus on transitional multifamily, office, and retail assets, especially those located within mixed-use developments.
Lionstone Investments has made the final close of Lionstone US Value-Add Five, a diversified fund that uses advanced analytics to acquire and rehab transitional multifamily, office and retail assets, especially those located in mixed-use developments in locations “where innovation, economic vitality and today’s most productive companies and people intersect,” as the firm described it.
Lionstone, whose parent company is Columbia Threadneedle Investments, raised $745 million, exceeding its target raise by $100 million. In addition to the recommitment of 100% of the partners from the previous fund, Lionstone Value-Add Four, the new fund also added new investors from Asia and the Middle East.
LVA Five has already acquired two assets and is under contract to purchase a just delivered multifamily project in Raleigh, NC. Bryan Sanchez, CIO of Lionstone, says the company is using analytics to gain early intelligence on potential market developments.
Launched in 2005, Lionstone’s value-add program has invested in and advised on over $2.4 billion of equity in value-add properties. LVA Four, which closed in January 2017, invested $500 million in a portfolio of nine multifamily, office, and mixed-use retail assets across the US. LVA Five will pursue the same underlying investment strategy, but using more advanced data analytic tools.