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CBRE Global Investors Closes U.S. Value-Added Fund, $1.34B of Equity Commitments
Los Angeles-based CBRE Global Investors closed its latest U.S. enhanced return fund with equity commitments of $1.34 billion from 25 institutional investors in the United States, Europe, the Middle East and Asia. Strategic Partners U.S. Value 8 is expected to have total purchasing power of $3.3 billion, including leverage.
The fund has invested or committed 59% of this amount, or $2 billion, in 17 high-quality office, multifamily, mixed-use and logistics assets. One of investments the fund has already made is Chicago’s 150 Michigan Avenue (pictured).
These initial acquisitions are targeting to deliver an 8% current return at asset stabilization. CBRE Global Investors is seeking to execute a relatively low-risk value-added strategy focused on institutional-quality real estate acquired at a discount to reproduction cost. Target markets include major U.S. metropolitan regions, with solid supply/demand characteristics expected to drive above-average rent growth and total returns.
For comments, questions or concerns, please contact Dennis Kaiser
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