The Related Companies has launched its second higher-returning fund since debuting with an opportunity fund that closed on $825 million in January 2012. The New York-based firm started speaking with potential investors just over a month ago, sources said, as it seeks to raise a similar amount for a US value-added vehicle.
Related, perhaps best-known for leading the development of the $20 billion Hudson Yards project in Manhattan, branched out into third-party management in 2010, when it launched the Related Distressed Opportunity Fund I and comfortably broke through its $750 million target. The firm also manages a $250 million construction loan fund with labor unions; a $500 million multifamily fund, which is fully invested; a credit platform venture with High Bridge to originate debt; and a $310 million multifamily fund with New York City public pension plans.
In addition, as PERE revealed in June, Related has an energy-related real estate strategy in the works. It is targeting $300 million to capitalize on the surge in energy exploration and production in the US.
Related's original opportunity fund is fully invested, striking such acquisitions as those for One Madison Avenue in New York, the Fidelity portfolio and Lovejoy Wharf in Boston, as well as 111 West Wacker in Chicago. It also became an activist investor in CommonWealth by buying shares in the publicly-traded REIT. Subsequently, the board left this year and Sam Zell was elected chairman.