Savanna, a New York-based private equity real estate firm, has announced the final close of its fourth fund, Savanna Real Estate Fund III. The vehicle attracted more than $440 million of commitments, which was significantly less than its initial equity goal, which was reported to be $650 million.
The firm reportedly launched Fund III in August 2012 and held a first close of $105.3 million in September 2013 and had raised $120.35 million a year later, according to filings with the US Securities and Exchange Commission. Capital came from a wide variety of institutional investors, such as insurance companies, sovereign wealth funds, public and private pension funds, foundations, fund-of-funds and wealth management companies.
Early investors included Ohio Police and Fire Pension Fund, which committed up to $45 million in June 2013, and the Kansas Public Employees Retirement System, which pledged up to $40 million in July 2013. More recent commitments came from Tennessee Consolidated Retirement System, which agreed to invest up to $50 million last February.
For Fund III, Savanna is focused on acquisitions of transitional office properties that require recapitalization or physical improvements, primarily in New York City. Savanna’s New York City acquisitions in 2014 included One Court Square, a 1.5 million square-foot office tower in Long Island City; 540 West 26th Street, a development site in Chelsea; 110 William Street, a 930,000 square-foot office building in the Financial District; 10 Madison Square Park, a retail condominium in the Flatiron District; and 141 Willoughby Street, a development site in Brooklyn.
Savanna’s last real estate fund, Savanna Real Estate Fund II, attracted $550 million in commitments in 2011. That fund beat its initial target of $400 million.