CB Richard Ellis Investors has closed CB Richard Ellis Strategic Partners U.S. 5 to new investors, having raised equity commitments of $2.1 billion from institutional investors in the United States, Europe and the Middle East. When leveraged, the fund’s two limited partnerships are expected to have $6.4 billion in purchasing power to acquire, develop, reposition and sell institutional-grade real estate in major U.S. cities.
Strategic Partners U.S. Value 5 will make value-added investments to reposition assets, stabilize property occupancy levels and invest in controlled-risk properties. The second partner, Strategic Partners U.S. Opportunity 5, will execute extensive repositioning programs primarily in distressed assets with high vacancy rates, invest in “early stage” development, acquire and reposition portfolios and invest in operating companies that control high-quality real estate. Both funds will invest in office, multifamily, industrial and retail properties.
“Strategic Partners U.S. 5 is a continuation of the strategy we implemented in our prior U.S. funds that has been adapted to capitalize on the current investment environment,” says Vance Maddocks, CEO of CBRE Investors. “This structure offers greater flexibility to our investors to select the style that best fits their real estate strategy. It also gives our investment team a broader mandate.”
The Strategic Partners U.S. program is part of a global closed-end real estate private equity fund series, which has closed 14 funds since 2000 with $7.5 billion in committed equity and more than $22 billion in total purchasing power.