Barrow Street Capital, the former private equity real estate arm of the New York investment bank Greenhill & Co, has closed its third private equity real estate fund on $372 million (€293 million).
The middle-market fund is seeking returns of 20 percent and will make equity and mezzanine debt investments in redevelopments, developments and distressed assets in supply-constrained markets around major employment centers on both US coasts.
The new fund is more than triple the size of Stamford, Connecticut-based Barrow Street’s second real estate opportunity fund, which closed on $104 million in 2002. In the past, the firm has made investments in office, industrial, R&D, multi-family, manufactured housing, parking and retail.
On the East Coast, the fund will target Boston, Miami, New York, Philadelphia, the Raleigh-Durham research triangle in North Carolina, as well as Washington DC and its Northern Virginia suburbs. On the West Coast, it will target the Los Angeles basin, San Diego, San Francisco, Sacramento, Portland and Seattle.
Barrow Street was formed in 1997 as the private equity real estate arm of Greenhill & Co, the publicly traded investment bank founded by Robert Greenhill, the former president of Morgan Stanley. In 2004, Greenhill & Co sold its interest in Barrow Street to the principals of Barrow Street, according to SEC filings. Barrow Street is led by co-chief executive officers Nicholas Chermayeff and Robert F. Greenhill, Jr.