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Crow Holdings closes retail fund on $417m

The firm plans to buy small food and service-oriented centers with capital from its second retail vehicle.

Crow Holdings Capital – Real Estate has closed its second retail fund on $417 million, the Dallas-based private equity real estate firm said last week.

The firm was targeting $400 million for Crow Holdings Retail Fund II, according to PERE data. A spokesman for the firm said the fund was oversubscribed. Crow held a first close for the vehicle in July and a final close in October.

“We are pleased to close on Retail Fund II, a unique opportunity to acquire small food and service-oriented centers near universities, hospitals, corporate office parks, and densely populated neighborhoods,” Bob McClain, the firm’s head of real estate, said in last week’s statement.

This marks a continuation of the strategy used in the firm’s debut retail fund, which closed in June 2015 on $295 million. Crow has not begun investing capital from the latest fund, the spokesman said.

Investors in Retail Fund II include the North Carolina State Treasury, which allocated $100 million, and the New Mexico Educational Retirement Board (ERB) and the Missouri Local Government Employees’ Retirement System, which each earmarked $25 million, according to PERE data.

The firm manages over $10 billion in real estate for institutional investors. Crow Holdings Capital is a subsidiary of Crow Holdings, which also runs Trammell Crow Residential and Industrial, operating businesses that have more than $4 billion of property under development.

Last month, Crow Holdings announced that Michael Levy, a longtime executive at New York-based investment bank Morgan Stanley, moved to the firm’s senior leadership team as part of succession planning. He joined the firm November 7 as president and chief executive, according to meeting minutes from New Mexico ERB.

In addition to Levy’s move, Dan Feeney, who runs the firm’s retail investments, is expected to retire after the fund's investment period, New Mexico ERB said. Tiffani Heidebrecht, who currently works in the retail group, will take over his “product leader” responsibilities.