New York-based Savanna Investment Management has closed Savanna Real Estate Fund I on $313 million (€211 million). Park Hill Real Estate Group, a subsidiary of The Blackstone Group, served as placement agent.
The firm anticipates the fund will acquire approximately $1 billion in new investment and development opportunities. Limited partners in the fund include domestic and international institutional investors including private and public pension funds, insurance companies, banks, foundations and endowments.
“We are delighted with the confidence our limited partners have demonstrated in the successful closing of this Fund,” Chris Schlank, a managing partner of the fund, said in a statement. “Savanna's direct operating and execution platform combined with a substantial pool of institutional capital will help us to secure the kinds of compelling opportunities that we believe will deliver extremely attractive risk-adjusted returns to our investors. We feel that we are well positioned to capitalize on market opportunities given the current capital markets dislocation.”
Savanna Real Estate Fund I will focus on direct acquisitions for its own account, as well as joint-venture equity and mezzanine debt investments with third parties. The fund will target investments throughout the Northeast and Middle Atlantic states across property sectors including value-added office, residential, industrial, retail, land and development deals.
The fund is currently building a 100,000-square-foot residential rental and retail building across the street from Madison Square Garden in New York City.
Since its inception in 1992, Savanna has invested approximately $1.5 billion of capital in assets throughout the Northeast and Mid-Atlantic region.