Return to search

ElmTree lands $120m separate account – Exclusive

The St. Louis, Missouri-based firm is managing the capital on behalf of a Middle Eastern investor.

ElmTree Funds has inked a $120 million core separate account with an unnamed Middle Eastern investor, PERE has learned.

The St. Louis, Missouri-based private equity real estate firm will buy net lease office and industrial properties across the US with capital from the account. ElmTree focuses on investments that provide predictable cashflow and limited risk, according to its website.

“The US commercial real estate market continues to be viewed as a safe haven for foreign institutions seeking stable returns, and ElmTree Funds is one of the few platforms offering investors exposure to diversified net lease investment opportunities across the country,” said Jim Koman, ElmTree’s founder.

The Townsend Group, the Cleveland, Ohio-based consultancy, advised the unnamed investor, and Hodes Weill, the New York-based placement agent, advised ElmTree.

ElmTree has invested in $1.5 billion of office, industrial and healthcare properties since its 2011 founding. The firm held a first close for its latest fund, ElmTree US Net Lease Fund III, on $55 million in September, according to a filing with the Securities and Exchange Commission. The target size for the core vehicle was not disclosed.

ElmTree’s most recent publicly-disclosed transaction was the February acquisition of a 19,000 square foot warehouse in Bonita Springs, Florida, for $5.1 million, according to data provider Real Capital Analytics.

The firm managed about $1.3 billion in assets as of January 1.