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Merlone Geier closes latest fund on $900m

The San Francisco-based real estate investment firm has closed on its eleventh commingled offering, raising $900 million in equity.

Merlone Geier Partners has held a final close on Merlone Geier Partners Fund XI, raising $900 million in equity for the acquisition, development and redevelopment of retail properties along the West Coast. Fund XI primarily received investments from university endowments and foundations, consistent with the investor base of the San Francisco-based private real estate investment firm’s previous vehicles. The firm expects to begin deploying Fund XI’s capital before the end of the year.

Though Merlone Geier declined to comment, it is likely that Fund XI will target neighborhood and community shopping centers with strong anchor tenants, as the firm has with its previous funds. The firm’s website stated that Merlone Geier also aims to acquire “surplus real estate from retailers, non-dominant regional malls in need of redevelopment and raw land suitable for retail and mixed-use development” and prefers lease-up situations and significant physical redevelopment opportunities.

Merlone Geier and its predecessor, M&H Realty Partners, have been investing in West Coast retail property since 1993, acquiring 123 assets totaling nearly 20 million square feet. The firm has raised more than $3.2 billion of discretionary institutional capital over the past 20 years, including $600 million for its last vehicle, Merlone Geier Partners Fund X, which closed in January 2012.