Gerding Edlen Investment Management said April 26 that its third real estate fund closed with $416 million in capital commitments, exceeding its $350 million target. Gerding Edlen Green Cities III will invest in mixed-use, multi-family, and office properties in urban, high-growth markets. Gerding Edlen said it has committed about 64 percent of fund III’s capital, investing in eight transactions.
PORTLAND, Ore., April 26, 2017 /PRNewswire/ — Gerding Edlen Investment Management (“Gerding Edlen”), a leading real estate investment manager focused on mixed-use, multifamily, and office properties, today announced the final close of its third real estate fund, Gerding Edlen Green Cities III (“Fund III”), with $416 million in capital commitments, exceeding its $350 million target.
Gerding Edlen will seek to invest Fund III in mixed-use, multi-family, and office properties in urban, high-growth markets that present value-add investment opportunities. Through Fund III, the firm will focus on developing, retrofitting and managing properties with an environmentally-responsible and community-oriented approach that addresses the growing demand for sustainability across all property classes. Gerding Edlen has deep expertise within this strategy including the management of two prior real estate funds it sponsored.
Molly Bordonaro, Co-Managing Partner of Gerding Edlen, commented, “We are deeply grateful for the strong support of our investors who recognize our commitment to meeting performance metrics that go beyond just economic returns and can make a real difference in the lives of our tenants, communities and the planet. We are excited to deploy this capital in meaningful properties across the U.S. that lead to enhanced returns for our investors.”
Gerding Edlen has committed approximately 64% of Fund III’s capital, investing in eight transactions, including new construction and value-add retrofit.
Kelly Saito, Co-Managing Partner of Gerding Edlen, added, “The closing of Fund III marks an important milestone in the firm’s path towards meeting the evolving needs and preferences of today’s tenant. In this environment, success in our business requires a truly “hands-on” strategy, and we are grateful that the investor community recognizes our approach as evidenced by the Fund III’s oversubscription.”
Fund III, the largest fund to date raised by Gerding Edlen, received strong interest from a range of new and existing investors. Gerding Edlen raised two previous real estate funds in the past seven years, Gerding Edlen Green Cities I and Gerding Edlen Green Cities II with $183 million and $234 million in commitments, respectively, that follow a substantially similar investment strategy. In the past seven years, Gerding Edlen and its commingled real estate funds have invested in 22 properties within six high-growth U.S. cities, totaling 3,000 apartment units, 1.2 million square feet of office space and a total gross asset value of $1.7 billion.
Gerding Edlen is a leading private real estate investment, development and asset and property management firm recognized for its expertise in creating and owning highly sustainable, urban infill, office, residential and mixed-use properties. Founded in 1996, the firm engages a socially responsible approach to real estate by cultivating properties that strengthen communities, minimize impact on the environment and add profound value to residents and tenants. Gerding Edlen’s efforts are guided by a set of criteria, known as the Principles of Place, where community plays a pivotal role alongside design, technology and sustainability in the success of their properties.