ElmTree raises $888m for US net lease fund

ElmTree raises $888m for US net lease fund

Real estate private equity firm ElmTree Funds announced the closing of its largest commingled fund to date, ElmTree U.S. Net Lease Fund IV, L.P. (Fund IV).

ElmTree has raised $888 million of investor commitments, exceeding Fund IV’s original hard cap of $800 million.

Fund IV has approximately $2.5 billion in immediate investment capacity, of which approximately $800 million has been committed and deployed.

ElmTree said the fund’s investor base is comprised of leading public and private pension plans, insurance companies, endowments, and foundations. Fund IV targets investments in industrial and logistics assets across the United States.

Over the past year, ElmTree has deployed in excess of $4 billion and acquired and put under contract 47 properties, totaling more than 16.5 million square feet.

ElmTree’s investments across the United States have targeted strategically located markets with what ElmTree believes have strong market leasing fundamentals, positive demographic trends, and superior accessibility to major transportation hubs.

“We believe the overwhelming support of our limited partners underscores ElmTree’s continued success establishing itself as what we believe is one of the premier investors in the industrial space, particularly on the build-to-suit side of the equation,” said James Koman, CEO and Founder of ElmTree.

Koman added, “The COVID-19 health pandemic has accelerated the ongoing trend of population migration from gateway cities to growing primary and secondary markets, including very attractive areas such as Phoenix and Salt Lake City. We continue to execute on our investment strategy supporting growing e-commerce sales and the need to build out industrial facilities for supply chains, which we believe will result in positive real estate fundamentals.”