Mesirow Institutional Real Estate Direct has raised $1.245bn (鈧�1.1bn) for its latest US apartment fund.
The capital raised for the Mesirow Financial Real Estate Value Fund V exceeded the fund鈥檚 $1bn target and $1.2bn hard cap.
The fund鈥檚 investors include Connecticut Retirement Plans and Trust Funds which committed $150m and the Teachers鈥� Retirement System of Louisiana which added $125m to the fund.
Alasdair Cripps, Mesirow鈥檚 CIO, said: 鈥淲e are proud and humbled by the continued support and confidence of our investors as we expand our platform of value-add, risk-balanced multifamily real estate strategies.鈥�
Fund V鈥檚 primary investment strategy involves acquiring underperforming class-A and B multifamily assets at a discount to their replacement cost. The portfolio鈥檚 potential breakdown includes 40% to 50% in heavy value-add repositioning, 20% to 30% in light value-add enhancement, 0% to 10% in value-add purchases and 15% to 25% in ground-up development.
The fund expects to acquire using cash and with a portfolio-level loan-to-value ratio of up to 65%.
Fund V is expected to make 20 to 25 total investments, with an expected holding period of four to six years per investment.
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