New York Opportunistic Fund Closes With $1.25B in Commitments

New York-based Town Lane, an opportunistic real estate investment firm, has completed the final close of its inaugural fund, Town Lane Real Estate Opportunities Fund I, with $1.25 billion in total commitments. The fund was oversubscribed and closed on its investor commitments in the first half of 2024 above its initial $1 billion target. Fund I is backed by a diverse group of institutional investors, including university endowments, charitable foundations, family offices and pension funds.

Town Lane was founded by 19-year Blackstone veteran Tyler Henritze and co-founded by Parker Morse, his sister, who was previously at Sycamore Partners for over a decade. The firm intends to focus on thematically oriented opportunities where real estate operating capabilities within an asset class can augment performance.

The fund is opportunistically focused throughout the US with a flexible mandate across commercial real estate sectors and across the capital stack. It seeks to capitalize on the current complex and dynamic real estate investment environment catalyzed by higher interest rates.

“Within the backdrop of ongoing distress in commercial real estate, Town Lane was formed to pursue high conviction, thematically oriented opportunities leveraging the team’s 20+ years of pattern recognition and to do so within a more aligned, relationship-centric model,” said Henritze.

Kirkland & Ellis LLP served as legal counsel for Fund I.