Dune Real Estate Partners has raised $175 million for its latest opportunity fund.
Documents from the US Securities and Exchange Commission revealed that the New York-based real estate investment firm has garnered $175 million in equity commitments from 16 investors for Dune Real Estate Fund (DREF) III. The opportunistic vehicle, which was launched in July, has an $850 million fundraising target.
Through DREF III, Dune is targeting distressed commercial and residential real estate, as well as nonperforming loans and debt, throughout the US. The firm also is providing preferred equity and mezzanine debt to distressed property owners. Representatives from Dune declined to comment.
PERE previously reported that the Illinois Municipal Retirement Fund committed $25 million to DREF III in October. Other investors in Dune’s prior funds include the Arizona State Retirement System, the Boston City Retirement System, the Illinois Municipal Retirement Fund, State Universities Retirement System of Illinois and The Fire and Police Pension Association of Colorado, according to PERE Connect. Monument Group is serving as placement agent for the fund.
Dune’s previous real estate opportunity vehicle, DREF II, closed on approximately $794 million of equity in 2009. The firm’s first fund, DREF I, closed on $727 million of equity in 2006. Both funds currently are fully invested.
Dune Real Estate was formed in 2004 by Dan Neidich, along with Chip Seelig and Steven Mnuchin. The firm is the real estate arm of Dune Capital Management, a privately owned hedge fund sponsor. Neidich previously founded Goldman Sachs’ Whitehall Street Real Estate Funds, which raised more than $12 billion in equity for the bank.
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