Acadia raises fourth fund in just three months

The White Plains, NY-based real estate investment trust, which has a private fund arm, has exceeded its $500 million target for its opportunistic and value-added fund just three months after the vehicle’s launch.

Acadia Realty Trust has held a final close for Acadia Strategic Opportunity Fund IV, raising approximately $541 million in commitments. The vehicle is the fourth in the publicly-traded REIT’s series of institutional funds focusing on opportunistic and value-added investments in retail real estate.

Fund IV’s limited partners included endowments, foundations, pension plans, investment management firms and family offices. Acadia also committed $125 million, or 23 percent, of the fund’s total capital.

The REIT formed its latest fund on 16 May and held an initial closing on that same date. By 30 June, Fund IV had closed on a total of $347.6 million in equity from eight institutional investors, $100 million of which came from Acadia, according to the firm’s second-quarter report. In the report, released on 8 August, the REIT said it expected the fund size to ultimately range between $500 million to $550 million.

Similar to its predecessor funds, Fund IV will invest in both single-property and portfolio transactions in high barrier-to-entry, densely-populated and supply-constrained retail markets in US metropolitan areas along the East Coast and in Chicago. 

As of 30 June, Acadia had ownership interests in 57 core properties, as well as interests in 34 assets through its three opportunity funds. The combined portfolio primarily consists of neighbourhood and community shopping centres, mixed-use properties with a retail component and self-storage properties. The firm also invests in operating companies through its two Acadia Mervyn Investors funds, as well as Acadia Strategic Opportunity Fund II.

Acadia did not use a placement agent. Law firm Paul Hastings provided legal counsel on the fund.