Stockbridge Capital Group is scheduled to hold a final close today for Stockbridge Value Fund II, its second value-add fund. The vehicle, which attracted $320 million in commitments, had an original target of $400 million to $500 million.
The San Francisco-based real estate investment manager launched the fund in 2013 and held a first close of $184 million in January 2014, according to a filing with the US Securities and Exchange Commission. Limited partners in the vehicle included the Texas Municipal Retirement System, Montana Board of Investment and Indiana Public Retirement System, according to PERE Research & Analytics.
Through Value Fund II, the firm will invest in office, industrial, multifamily and retail properties that it believes are undervalued, underutilized on the West Coast, East Coast and Sunbelt of the US. Stockbridge will seek to add value through additional capital investment, leasing, recapitalization and renovations.
To date, the investment manager has closed on 10 investments on behalf of the fund, and four additional transactions under contract. Recent investments have included the acquisition of a six-property, 673,155-square-foot warehouse portfolio in San Diego from TA Associates Realty for $44.5 million in April, and the purchase of the Preston Park Financial Center in Plano, Texas last December.
Stockbridge raised its first value-add fund in 2012, with $220 million in capital, against a $400 million target. The firm, which was founded in 2003, previously sponsored three opportunistic funds and related co-investment vehicles totaling $2.6 billion in equity. Its last opportunistic fund, Stockbridge Real Estate Fund III, was launched in 2007 and raised $1 billion. As of March 31, Stockbridge had total assets under management of $9.8 billion.