New York-based Savanna has corralled 30 percent more capital for its latest value-added fund than the predecessor vehicle, PERE has learned.
Savanna Real Estate Fund IV closed on $591 million, at the top end of its $500 million-$600 million target, PERE understands. The vehicle had a $750 million hard-cap. Fund III closed on $440 million in January 2015, well short of its $650 million target, PERE previously reported.
The firm declined to comment on the fundraise.
Fund IV’s investor base comprises public and private pension funds, insurance companies, high-net-worth family offices, foundations and wealth management companies from North America, South America and Europe. Over 75 percent of the fund’s investors committed to previous vehicles, with new limited partners hailing from South America and Europe.
New York-based Park Hill Real Estate was the lead placement agent for the fund series, and Santiago-based Picton worked with high-net-worth and institutional investors in South America for Fund IV, PERE understands.
Similar to previous vehicles, for Fund IV, Savanna is focused on acquisitions of transitional New York City properties that require recapitalization or physical improvements. To date, the firm has made two acquisitions through Fund IV.
In July, Savanna bought 31 West 27th Street, a 12-story mixed-use building in Manhattan’s NoMad neighborhood, for $126 million, according to data provider RCA. In October, the firm bought the Berkeley Building, a, 18-story office located at 19 West 44th Street, also in Manhattan, for $195 million, per RCA data.
“Having acquired two fantastic properties in prime locations with significant opportunities to add value, we are well underway in executing the strategy we discussed with our investors when raising Fund IV,” Savanna co-founder Nicholas Bienstock said in a statement.
Return targets for the fund series were not available.