May 16, 2018
New York-based GreenOak Real Estate raised $1.55 billion for a third U.S. fund, which amounts to its largest so far. The value-add fund, which is targeting returns of about 15% after fees, will seek to acquire existing properties that will be renovated and repositioned for sale in roughly three to five years.
The investor has historically allocated most capital to markets such as New York, San Francisco, Los Angeles and Boston. For the latest fund, GreenOak will also target other major cities such as Seattle, Washington and Miami, which are viewed as more resilient than less-populated areas should a downturn occur.
In recent times, GreenOak has been a seller of assets in major markets, but the firm expects to be a net buyer in 2018, partner and founder Sonny Kalsi told Bloomberg. The new fund’s investment capacity could hit $5 billion in asset acquisitions.
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