Almanac Realty Investors has closed its latest value-added real estate fund oversubscribed. According to a statement by the New York-based private equity real estate firm, Almanac Realty Securities (ARS) VI has closed on $819 million in equity commitments, exceeding its original fundraising goal of $800 million. Investors also have authorised an additional $150 million for potential sidecar investments.
ARS VI was launched in June 2011 and held a $313 million first close in December 2011. Investors include the New York City Employees' Retirement System, the Pennsylvania Public School Employees' Retirement System, the City of Philadelphia Board of Pensions and Retirement, the Los Angeles Department of Water and Power Employees' Retirement Plan, the Arkansas Teacher Retirement System, the Los Angeles City Employees' Retirement System and New Mexico State Investment Council.
Through the fund, Almanac plans to target private and public real estate operating companies in the 50 largest US metropolitan areas. In fact, the firm already has made three commitments on behalf of ARS VI – $150 million in Drawbridge Realty Trust, $150 million in NRES Holdings and $100 million in RAIT Financial Trust. Almanac also is under contract or in negotiations for two additional transactions on behalf of the fund.
Drawbridge will use the capital from ARS VI to expand its portfolio of commercial real estate properties in the western US, with a particular emphasis in California and Austin, Texas. NRES will use the funds to grow its portfolio of multifamily properties and expand its property management platform. It will seek predominately Class A and Class B properties in infill locations in select Midwest and Southern markets. RAIT will use the capital for its expanding loan origination and investment activities, including CMBS and bridge lending.
Almanac was founded in 1981 as Rothschild Realty Managers, but it was renamed in December 2011, after its partnership with financial advisory firm Rothschild North America was dissolved. Its funds platform, Almanac Realty Securities, comprises six funds that have made 31 private placements in public and private real estate companies, representing a total of $2.6 billion of capital. ARS funds target an annual net return of 12 percent, with transactions typically structured as convertible preferred or convertible debt securities.