Value-Add Real Estate Fund Expected to Assemble a Portfolio of 40-50 Mid-Sized US Properties
Baltimore, MD – Alex. Brown Realty has conducted the final closing for ABR Chesapeake Fund IV, a real estate investment fund targeting value-add opportunities in the US mid-cap real estate market. Capital commitments totaled $282 million.
Total fund capital well exceeded the fund’s original target. Fund investors include the West Virginia Investment Management Board, the Montana Board of Investments, Baltimore City Fire and Police, and other pension funds, endowments, foundations, family offices and high net worth investors. Allegro Advisors LLC assisted in the fund’s capital raising efforts.
The fund will invest in moderately-leveraged mid-sized properties and will focus on assets that require financial restructuring, recapitalization, redevelopment and/or repositioning. All acquisitions will be made through joint ventures with local operators. The fund’s portfolio is expected to be well diversified, both geographically and by property sector.
The fund expects to assemble a portfolio of 40-50 assets and has already acquired its first 10 assets, each representing an acquisition from a motivated lender or distressed property owner. With these 10 investments, the fund has deployed more than $44.0 million of equity in a portfolio initially valued at $124.4 million. The investment period for the fund will be completed by mid-2015. Typical asset holding periods will be between three and seven years, and the fund will self-liquidate as assets are sold. The fund has already liquidated two investments, producing very attractive returns.
Alex. Brown Realty (ABR) is a privately owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com