CIM captures $2.4 bn for Fund VIII

The Los Angeles-based private equity real estate firm has closed on its first largest property fund to date.

CIM has held a final close for its latest opportunistic real estate fund, CIM Fund VIII, gathering a total of $2.41 billion, according to filings with the US Securities and Exchange Commission. The fund, which had been in market for more than two years, exceeded its original $2 billion target.

CIM held a first close on Fund VIII in December 2012, collecting $356.90 million in commitments, according to SEC filings. The vehicle was backed by limited partners such as the San Francisco Employees’ Retirement System, which committed $65 million in October 2013 and the New York State Common Retirement Fund, which designated up to $200 million in September 2014.  Citi’s private banking group, which previously was a co-investor in CIM Fund III’s development of 432 Park Avenue in New York City, also was a limited partner in Fund VIII.

Similar to CIM’s previous opportunity funds, the new vehicle will invest in the repositioning and development of retail, residential, office, parking, hotel and other property types in urban communities in the US. Fund VIII will be focused geographically in the states of California and New York and the cities of Los Angeles, Miami, New York City, Washington, DC and Bethesda, Maryland. Among CIM’s recent investments were the acquisition of a two-acre residential development site in San Francisco’s Mission Bay District, announced in November, and sale-leaseback of Farmers Insurance’s 10-acre Wilshire Boulevard campus in Los Angeles, announced in April.

Fund VIII is CIM’s first opportunistic real estate fund since CIM Fund III, which closed on $2.37 billion in October 2007. CIM also invests in core/stabilized properties through two real estate investment trust vehicles, and in infrastructure assets through an infrastructure fund.