Ridgewood launches debut fund

The Florham Park, New Jersey-based investment firm is seeking $150 million to invest in land on which to develop single-family homes for sale.

After investing in residential land either through one-off deals or individual relationships with investors, Ridgewood Real Estate Partners has launched its first commingled real estate investment fund, PERE has learned. 

According to Jonathan Grebow, president and chief executive officer of Ridgewood, the Florham Park, New Jersey-based real estate investment firm has launched Ridgewood Real Estate Fund I. The firm is seeking $150 million in equity commitments from institutional investors on behalf of the opportunistic vehicle. 

Through the fund, Ridgewood plans to invest in land on which to develop single-family homes for sale. Its geographical focus will be across the Northeast and Mid-Atlantic regions, as well as select markets such as Florida, Phoenix, Las Vegas, Texas and, to a lesser extent, California.

As for why Ridgewood decided now was the time to launch its first fund, Grebow told PERE: “We were just looking for more flexibility and the ability to move faster. We’ve invested through one-off relationships for a number of years, so we decided it was time to give a fund a shot.” 

Ridgewood is seeking investments from institutional investors of all kinds except high-net-worth individuals. The minimum contribution to the fund is $10 million, and a first close is anticipated towards the end of the summer. 

Grebow formed Ridgewood in 2008 as a national residential real estate developer and investor specializing in land purchases. Beginning in mid-2009, the firm started acquiring a series of land holdings with a single institution as the sole investor in a portfolio totaling more than $100 million. This portfolio comprises seven transactions totaling more than 7,100 lots.