By Jon Peterson
Los Angeles-based CBRE Global Investors has concluded its final capital raise on its CBRE U.S. Development Partners 5 fund with a total equity raise of $616 million, according to information supplied by the manager.
One of the assets in the fund is an industrial asset in San Jose. CBRE investors declined to make any additional comment on this property at this time.
There is a total of nine other properties in the fund currently, and they span across the country. These properties are located in Dallas, Denver, Phoenix, Portland and Washington, D.C. Presently, these assets make up 90 percent of the total number of properties planned for the fund, according to the information provided by CBRE Global Investors. The total development costs on these projects plus leverage totals $1.3 billion.
All of these properties have been placed into the fund as part of a programmatic joint venture with Trammell Crow Company. It is very likely that the other assets that will be moved into the fund in the future will also be done with Trammell Crow.
The capital raise by CBRE Global Investors included both capital placed directly into the fund and some capital that will be used for co-investment opportunities alongside the fund. A lead investor in the fund with a $200 million commitment was the Teacher Retirement System of Texas, as stated by the pension fund in an email.
Development Partners 5 will be focused on four separate property types. This will include industrial assets that are state-of-the art distribution and last-mile fulfillment centers, multifamily rental communities with superior access to transportation and lifestyle amenities, medical office buildings and mixed-use properties that provide collaborative, flexible and highly amenitized workspace.