Crow Holdings closes ninth U.S. value-add real estate fund at $2.6bn

Crow Holdings closes ninth U.S. value-add real estate fund at $2.6bn

Crow Holdings has announced the final closing of Crow Holdings Realty Partners IX, L.P., its ninth U.S. value-add real estate fund, with approximately $2.3 billion of commitments, above its original hard cap of $2 billion.

The fund, managed by Crow Holdings’ investment management company Crow Holdings Capital, invests in value-add real estate assets across the U.S., primarily in industrial and multifamily as well as in specialty sector opportunities.

The fund has also closed on co-investments totaling $265 million in equity capital, resulting in approximately $2.6 billion in total investable equity for the strategy.

Crow Holdings said Fund IX marks the firm’s largest fundraise to-date and is a significant increase from the $1.3 billion of commitments raised for the predecessor fund.

The fund focuses on diversified value-add investment and development opportunities in multiple property types across major U.S. markets.

”These opportunities today are primarily in industrial and multifamily as well as specialty sectors including manufactured housing, convenience and gas, self-storage, and student housing. Entirely raised during the Covid-19 pandemic, the fund also began investing during this challenging time. To date, more than 63% of the fund’s capital has been committed across 62 investments, located primarily in the high-growth Southwest, Southeast and Mountain regions of the U.S.,” said the compamy in a press release.

“We are grateful for our investment partners’ confidence in our team’s continued ability to deliver results for them,” said Michael Levy, CEO of Crow Holdings. “This successful close demonstrates appreciation for our firm’s longstanding track record, real estate expertise, and especially our early recognition of the significant tailwinds behind logistics and e-commerce demand, shifting population demographics, and changing housing preferences as integral to our differentiated investment strategy.”

“With more than 63% of Fund IX’s capital committed, we are already generating strong investment results, including returning capital early in the Fund’s life cycle through quick realizations. This performance is a credit to the team that has worked hard during this unprecedented and challenging time to continue to deliver on our commitment to all partners,” said Bob McClain, CEO of Crow Holdings Capital. “We believe that our pipeline – particularly in the industrial, multifamily and specialty sectors – is going to continue to provide attractive opportunities to drive results throughout the Fund’s lifespan.”

Hodes Weill Securities, LLC acted as placement agent for Fund IX.