Latitude Management Real Estate Investors is nearly halfway to its capital-raising goal for its third value-added vehicle.
Documents from the US Securities and Exchange Commission have revealed that the Los Angeles-based fund manager has raised approximately $242.2 million for Latitude Management Real Estate Capital (LMREC) III. So far, the value-added real estate debt fund has garnered commitments from such investors as the Pennsylvania Public School Employees’ Retirement System, which contributed $75 million late last year, and the Ohio Bureau of Workers' Compensation, which committed $50 million in February. Representatives from Latitude declined to comment.
Through LMREC III, which has an equity target of about $550 million, Latitude is looking to originate short-term, floating-rate first mortgages and bridge loans on transitional value-added commercial property. Latitude's niche is defined by its focus on smaller-sized assets— between $5 million and $25 million—located in primary and secondary markets in the West, Southwest and Southeast. Property types are limited to multifamily, office, industrial, hospitality and grocery-anchored retail.
Latitude formerly was known as Legg Mason Real Estate Investors, but the firm changed its name in April 2009 when Legg Mason exited the business.