Alex.Brown holds $175m first close

The Baltimore-based firm is seeking $400 million for its fifth fund, its largest yet.

Alex.Brown Realty, the Baltimore-based investment manager, is back in the market with its latest fund.

PERE has learned the firm held a $175 million first close at the end of last quarter for ABR Chesapeake Fund V, a value-add vehicle with a $400 million target.

The firm invests across property types, focusing on opportunities for redevelopment, rehabilitation or recapitalization in deals of up to $30 million. With capital from the fund, the firm has acquired six assets so far. Alex.Brown has a net internal rate of return target of 12 percent. Its last fund has a 14 percent net internal rate of return target, but the firm told investors to expect a lower target because of more heated market conditions.

Investors in the fourth fund included Montana Board of Investments, which committed $30 million, and City of Baltimore Fire & Police Retirement System, which committed $25 million, according to PERE Research & Analytics. The firm launched ABR Chesapeake Fund IV in August 2010 and closed it to investors in December 2012 at $282 million.

Eaton Partners, based in Rowayton, Connecticut, is the placement agent for the latest fund.

In the last year, Alex.Brown has made acquisitions ranging from a strip mall in Phoenix, Arizona to apartment buildings in San Marcos, Texas. Its latest disposition, according to real estate data site Real Capital Analytics, was a 125,453 square foot warehouse in Twinsburg, Ohio. Alex.Brown sold the building for $1.5 million in October.