CBRE GI captures $411m for US multifamily fund – exclusive

The new vehicle is the Los Angeles-based real estate investment manager’s largest to date in its Wood Partners Development fund series.

CBRE Global Investors (GI) has held a final close on its latest multifamily development fund, CBRE Wood Partners Development 4 (Wood 4). The Los Angeles-based real estate investment manager raised a total of $411 million in equity, beating its original $400 million target.

Wood 4's capital came from five investors from North America and Asia, four of whom are repeat investors from the previous funds in the Wood Partners Development series. The fund is already 40 percent invested in three properties in Chicago, Washington, DC and Dallas. CBRE GI held a first closing on $203.69 million of capital for the fund last June, according to a filing with the US Securities and Exchange Commission.

The fund is the largest to date in the Wood Partners Development fund series, a programmatic relationship between CBRE GI's Strategic Partners US multifamily development program and Wood Partners, a multifamily developer and operator. On behalf of the fund, CBRE GI will develop, lease and sell multifamily communities in select US markets through investments with total projected development costs of $1 billion, including leverage. The firm previously raised more than $300 million for Wood 3 in 2013.

“With our focus on high job growth markets that also have a high cost of home ownership, we continue to see excellent opportunities in the multifamily sector, especially in neighborhoods with locational amenities that appeal to baby boomers and millennials,” said Vance Maddocks, president of CBRE Strategic Partners US. “We intend to execute on market-leading strategies in community design and operations, developing institutional-quality properties nationwide.”

With the closing of Wood 4, the fund series has now amassed capital totaling more than $1 billion, with total investment capacity of $2.6 billion.