AMERICAS NEWS: Digging for multifamily

Grosvenor looks to secure up to $500m for its latest multifamily fund, which is targeting US apartment developments. PERE Magazine March issue 2011

When it comes to simple fundamentals, US multifamily is considered far and away the leader of all the real estate sectors. The best demographics of a generation, rising demand and lack of supply are combining to make multifamily the most sought after investment of many institutional investors today.

For Grosvenor Fund Management, though, the confluence of demand and supply also is pointing to another opportunity: multifamily development. According to people familiar with the matter, the Philadelphia-based arm of the London investment firm is targeting between $250 million and $500 million for a multifamily development vehicle, the Grosvenor US Multifamily Fund.

The fund, which is expected to hold a first close in the third or fourth quarter of this year, will target largely US and European investors.