CBRE closes second multifamily co-investment fund

Both vehicles have $320 million in equity commitments and a combined investment capacity of $850 million for multifamily development.

Richard Ellis has closed a second co-investment fund focused on multifamily development, according to an announcement by the Los Angeles-based real estate investment firm. The fund raised $165 million in equity commitments from a group of US institutional investors that include the Teacher Retirement System of Texas and the Ohio School Employees’ Retirement System. 

Wood Partners Co-Investment Venture 2 is a follow-on venture to Wood Partners Development (Wood 1), which closed at the end of 2010. All told, the two co-investment funds have $320 million in equity commitments and a combined investment capacity of $850 million. The two vehicles are part of Richard Ellis, the firm’s closed-end commingled fund series.

The investment strategy of both Wood 1 and Wood 2 is to provide capital to multifamily developer and operator Wood Partners for ground-up development of Class A multifamily communities in major metropolitan markets across the US. Wood 2 targets markets that exhibit limited supply and strengthening demand fundamentals.

“We continue to see significant opportunities in the multifamily sector and are pleased to be able to continue our momentum through these co-investment programs,” said Vance Maddocks, president of CBRE Strategic Partners US, in a statement. 

The portfolio for both co-investment vehicles includes properties in 15 communities, totalling more than 3,500 units in nine metropolitan markets. The markets include Boston, Seattle, Los Angeles, San Diego, Denver, Dallas, Houston, Chicago and Washington DC.