Tyler Henritze’s Town Lane Exceeds Target with $1.9-Billion Fundraise

Town Lane, a boutique real estate investment firm co-founded by Blackstone Real Estate veteran Tyler Henritze, said Monday it had closed on Town Lane Real Estate Opportunities Fund II at its hard cap with $1.9 billion in investor commitments. The new fund exceeds the $1.25 billion raised for Town Lane’s inaugural fund in 2024. Fund II, as well as the $1.5-billion target for Fund II, which it surpassed this past summer.

“We are fortunate to be playing offense with fresh capital at a time of increasing market dislocation,” said Henritze, managing partner of Town Lane, which he co-founded with his sister Parker Morse. “In today’s dynamic real estate investment environment, the combination of a nimble team, a flexible mandate and ample capital to pursue larger, high conviction opportunities is a real advantage.”

Fund II is backed by a diverse group of experienced institutional investors, including university endowments, charitable foundations, family offices and pension funds, with strong support from returning Fund I investors. As with Fund I, the new fund has a flexible mandate to invest opportunistically across commercial real estate sectors and throughout the capital stack in the U.S. To date, Town Lane T has invested behind resilient themes with durable supply and demand fundamentals, including seniors housing, necessity retail, small-format industrial and powered shell data centers.

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