CenterSquare Investment Management Holdings has held an about $100 million first close for CenterSquare Value-Added Fund III, LP. CenterSquare is targeting $500 million for the fund, which invests in middle market transitional real estate across the U.S. that requires structuring and re-positioning to maximize cash flow and market value. The fund targets special situations investments of $15 million to $50 million in the office, multi-family, retail, industrial, parking and hospitality sectors.
CenterSquare Investment Management Holdings, Inc., a BNY Mellon investment boutique specializing in real assets investing, announced a first closing of approximately $100 million for its CenterSquare Value-Added Fund III, L.P.
CenterSquare has set a target of raising $500 million for the fund.
The fund invests in middle-market transitional real estate assets across the U.S. that require structuring and repositioning expertise to maximize cash flow and market value. The fund targets special situation investments of $15 million to $50 million in the office, multifamily, retail, industrial, parking and hospitality sectors.
CenterSquare partners with local real estate operators in an effort to achieve a competitive advantage in both investment sourcing and business plan execution. The firm also benefits from market research obtained from its in-house public real estate securities research and investment platform.
“We believe that the best way to achieve appropriate risk-adjusted returns in the current yield-starved environment is to create value through the acquisition of properties that require capital improvements or financial restructuring,” said P.J. Yeatman, head of private real estate for CenterSquare. “Successful execution can result in durable income streams that can be monetized at healthy premiums. We also continue to pursue special situations by targeting owners of real estate that are asset rich such as faltering operating companies, municipalities and distressed owners. We see these channels of opportunity as being highly complementary to our traditional sourcing strategies.”
Notes to Editors:
CenterSquare was founded in 1987 and offers a variety of real asset strategies and products. CenterSquare manages approximately $6.8 billion of public real estate securities through CenterSquare Investment Management, Inc. and approximately $1.5 billion (gross) of debt and private equity real estate investments through CenterSquare Investment Management Holdings, Inc. (together referred to as “CenterSquare”), as of September 30, 2014. It manages investments for institutional investors and high net worth individuals throughout global markets and across public and private capital sectors. It is one of the investment boutiques of BNY Mellon Investment Management.
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