Morgan Stanley Real Estate has closed its fifth US real estate fund on $1.75 billion (€1.4 billion). The fund, which is four times larger than its 2000 predecessor, is already 60 percent invested, according to the company.
“Compelling investment opportunities continue to exist throughout the United States from improving property market fundamentals, secular demographic trends and take-private transactions,” said Michael Franco, managing director and head of Morgan Stanley Real Estate US, in a statement.
This week, the MSREF V vehicle invested $400 million in a $2.1 billion joint venture with Crescent Resources, the real estate subsidiary of Duke Energy. Crescent primarily focuses on primary and secondary residential developments in the southeastern US.
Earlier this month, Morgan Stanley and Gale International acquired 23-acres of seaport land in Boston for $204 million. The joint venture sees the site, which is the largest undeveloped property near the city’s central business district, as ideal for mixed-use development. A statement released at the time called it Boston’s “next great neighborhood.”
Morgan Stanley also closed a $4.2 billion international opportunity fund in March, which is primarily focused on Japan, Asia-Pacific and Europe.