Global One Investments, the investment arm of New York-based real estate management firm Nelson Management Group, has launched its second fund, Global One Real Estate Fund II, with a $150 million target.
To date, the firm has raised $20 million of that amount, according to a filing with the US Securities and Exchange Commission. The value-add and core-plus fund will target the acquisition of existing multifamily and mixed-use properties with 50 to 5,000 units in New York City. With leverage, the fund is expected to have total buying power of approximately $450 million.
“Our expertise is in owning and operating a variety of multifamily assets, from luxury properties to middle income to Section 8 housing,” said Robert Nelson, president of Nelson Management Group and principal of Global One. “Our knowledge of the New York City metropolitan area has given us both an understanding of overall market dynamics, as well as local, state and federal affordable housing programs. This, in turn has allowed us to target assets primed for market repositioning.”
The firm launched its first fund, Global One Real Estate Fund, in 2008, raising a total of $11 million. Global One declined to provide performance data on the fund, citing compliance restrictions.
Since its formation in 1996, Global One has acquired over 3,000 units in 17 properties valued at over $660 million. The firm launched its first fund, Global One Real Estate Fund, in 2008 and purchased more than 1,300 housing units with the vehicle. Through other ventures, the firm also purchased more than 1,700 housing units.
Global One typically acquires properties that have below-market rents because of municipal, state or federal restrictions; properties that are in prime locations but undervalued because of mismanagement or neglect; and assets or real estate partnerships that can be acquired at a discount to market value.
Properties in the portfolio currently include 275 South Street in Lower Manhattan, Promenade Apartments in Upper Manhattan, Atlantic Plaza Towers in Brooklyn’s Ocean Hill neighborhood and Hazel Towers and the Lafayette Boynton apartments in the Pelham Bay and Soundview sections of the Bronx.