Zoning in on smart growth

Zoning is changing in the US. Urban sprawl is making way for smarter, more dense, communities where people live where they work and play. But as private equity real estate firms understand only too well, it's an extremely slow process. By Zoe Hughes

In 1926, the US Supreme Court delivered a ruling that irredeemably changed the face of the US. Siding with the small farming village of Euclid over the future use of 68 acres of land, the Supreme Court judge, Justice Sutherland, argued that local communities did indeed have the right to police all land use within their boundaries. It was synonymous, he said at the time, with dealing with “a pig in the parlor instead of the barnyard.” For more than 80 years, Justice Sutherland's verdict has played a major role in shaping the landscape of US cities and communities. Evolving into the theory of Euclidian zoning, Justice Sutherland's ruling has ensured the continued segregation of different types of land use from residential, commercial to industrial. Critics argue it has also been the main driving force behind urban sprawl.

“The trend has always been to try to stop buildings from going up, to prevent building in the first place and to try to limit growth by using the ‘not in my backyard’ argument. We are starting to see that change.”

Now, however, the landscape is starting to change. As the economy continues its shift away from heavy industry to services, and as gasoline breaks through the $4 (€2.54) a gallon mark, policymakers, developers, real estate investors and the public are beginning to question the future direction of zoning laws in the US. Many are wondering whether there is a smarter way to design towns and cities in the US to ensure people live, work and play in the same area. They are asking, in essence, whether the Euclidian barnyard shouldn't actually be located next door to the parlor instead.

Call it what you will – high-density planning, smart growth, mixed-use, clustering – this development is presenting a major investment opportunity for private equity real estate firms as authorities start to strike down the segregations of yesteryear and embrace a new way of living.

“This shift in focus for zoning authorities is creating new opportunities,” says Howard Schlesinger of New York-based private equity real estate and development firm Meridian Development Partners.

The traditional role of zoning in the US, according to Greg Vilkin, managing principal and president of MacFarlane Partners, has been about trying to “stop buildings from going up, to prevent building in the first place and to try to limit growth by using the ‘not in my backyard’ argument.” That, however, is now starting to change as increasing numbers of planners start to demand smarter growth and greater density to prevent sprawl. “People now recognize that, in urban areas, density doesn't mean pollution and traffic but can actually take people out of their cars,” Vilkin says.

Smart growth is primarily about allowing people to live closer to where they work and play: a fact that maybe taken for granted in a place such as Manhattan, but which rarely happens outside of New York City. According to the 2006 American Community Survey, the latest data available, 76 percent of workers in the US drove to work alone in their cars. Less than five percent used public transportation and more than a third of the 250,000 households surveyed spent between 20 to 35 minutes travelling to work. Just 0.5 percent used bicycles to get to and from work. Now with gas prices showing little sign of decreasing, public appetite for driving long distances is diminishing.

Tom Murphy, former mayor of Pittsburg between 1994 and 2006 and a senior resident fellow for urban development at the Urban Land Institute, says the “green” revolution of the past two decades had already started to focus peoples' attentions on the need for a change in zoning rules and how communities were developed. Typically, he said, US zoning laws – which are governed by each individual authority from state to city, municipality and even down to local grass roots level and so are extremely fragmented in nature – had the “suburbs in mind” where the car was not only king, but critical for any kind of quality of life. The question, he says, was how to persuade the public to change their behavior dramatically enough that it could spearhead a fundamental shift in public policy. “In the recent past that was always the question of how change is encouraged, but gas prices are doing that work for us,” he adds. “You are beginning to see that people don't want to live way out in the suburbs and drive 40 miles to work and 40 miles back again. As gas prices go up so people are changing their lifestyle habits. They are buying smaller cars and as the price of gas continues to go up it will affect the places where people choose to live.”

Getting snug in Sacramento
Renowned for tomatoes, grapes and wine, the Sacramento region is one area in the US actively changing its zoning laws in ensure increased smart growth development, and less urban sprawl.

The Sacramento blueprint adopted in 2004 by the six counties of El Dorado, Placer, Sacramento, Sutter, Yolo and Yuba as well as 22 cities in the region may not be binding, but its strategy for development over the next 50 years is helping to change attitudes towards real estate in that part of California.

According to the blueprint, smart growth could protect around 360 square miles of land from urban development and reduce the number of large-lot single family houses from an expected 80 percent by 2050 to just 31 percent. The plan would also see brownfield redevelopment as a crucial component, with 13 percent of all housing and 10 percent of future jobs created through the reuse and redevelopment of existing real estate. And it's already heralding some success, according to the Sacramento Area Council of Governments (SACOG), which spearheaded the blueprint. The latest figures reveal that density in new residential projects has increased in the four years since the plan was adopted, with 67 percent of all units for sale or under construction in 2007 being small lot properties or attached homes compared to 33 percent large lot homes. In 2004, when the plan was approved, that figure was 34 percent for small lot/ attached homes and 61 percent for large lot homes. If the region hadn't adopted a smart growth plan that figure was projected to be just 20 percent for small lot/attached homes compared to 80 percent large lot properties by 2050.

Tom Cosgrove, board chairman of SACOG, says smart growth is a phenomenon taking hold of authorities around the US although, he adds, it is sometimes policymakers who have to persuade real estate developers and investors of the benefits of such a change. “It's a matter of moving people out of their comfort zones and getting them to do things they're perhaps not used to doing. But when it does take place and smart growth is seen in action you can see the returns and economic benefits are there – for all sides.”

Smart growth however is not merely a response to the current price of oil. It has steadily been growing as a trend within the US zoning framework for the past decade. It is in part a consequence of the desire to lead greener lives, as Murphy states, but also a response to the changing demographics of the US.

The face of the US is now very much represented by the baby-boom generation and their children, the boomers and echo-boomers, according to Vilkin. “If you look at young professionals in their 20s and then compare them with the empty-nesters, those in their 50s, and you then look at their spending patterns they are almost identical,” he says. “They don't have children. They don't worry about school. They're driven by lifestyle choices and activities, and they want to have choice. These are the two largest demographics in the US.” In the 1950s, 1960s and 1970s, when zoning was very much about separating residential development from commercial and industrial uses, people voted with their feet for suburban shopping centers and sprawl, Vilkin points out. “Demographics are shifting to the side of smart growth,” he adds. The high price of oil has just brought the issue into much sharper focus.

Together these three factors – the green, sustainability agenda, demographics and oil – are driving the American Dream of a detached house, with a front and back yard and car in the driveway out of the suburbs and increasingly into urban areas, often with public transportation as the main means of commuting to and from work.

Indeed for Vilkin, transportation is key to the success of high-density neighborhoods. Last year, San Francisco-based MacFarlane announced a $7 billion joint venture with The JBG Companies and Morgan Stanley Real Estate to develop 42 separate sites in Washington DC and its suburbs in Maryland and northern Virginia. The portfolio – due to be completed by 2013 – will see the development or renovation of 8.6 million square feet of office space, 2.4 million square feet of retail space, 2,500 hotel rooms and 13,000 multifamily residential properties. Approximately two-thirds of the development sites are located next to or near transit stations along Washington DC's Metro rail system. “The idea is about walking to the transit system,” Vilkin says. “Density has to be focused around transit nodes if it's to work successfully.”

Something echoed by Schlesinger: “The trend in development is to create walkable communities where people can live, work, shop and play. An additional driver is the growth of transit-oriented development, where the mix of uses is centered around rail and other public transportation hubs.”

Meridian is currently developing the site of a former Pennsylvania House furniture plant in Lewisburg, Pennsylvania. The factory – taken over by US furniture chain La-Z-Boy in 2000 – closed down in 2004 with the loss of more than 400 jobs. Schlesinger says that as the US economy turns increasingly from heavy industrial uses to more service-related industries, local governments are faced with the challenge of finding alternative uses for these former industrial sites. Zoning is a tool that is allowing policymakers, developers, investors and communities to facilitate those changes. “There is a major effort throughout the country to transform the way zoning is understood and implemented. Zoning innovations are facilitating this effort by focusing on what you can do, rather than what you can't.”

“Zoning innovations are facilitating [smart growth] by focusing on what you can do, rather than what you can't.”

In redeveloping Penn House Commons into a mixed-use residential, retail and light industrial complex, Meridian worked closely with zoning authorities and the local community before eventually arriving at a plan for the 42 acre site. Schlesinger says the first step was discussing their vision for the former factory with the local township before formulating a concept for the property and starting the formal approval process. In the case of Penn House Commons, Meridian plans to demolish a majority of the 650,000 square feet of existing warehouse and industrial property on the site and replace it with mixed-use facilities including 100,000 square feet of retail space, around 200 multifamily units and upwards of 150,000 square feet of office and light industrial use. At least one quarter of the site will be reserved for green open space. The private equity real estate and development firm says it chose the site for its location and surrounding infrastructure, such as schools, universities and hospitals. Meridian is now in the final stages of gaining approval via a neighborhood development ordinance, which will allow for greater density at Penn House and in the surrounding area. The process, Schlesinger says, will have taken about a year to complete. “It is about building consensus. As economies shift, so too will the way we live, work and play.”

Sacramento, California is another region where smart growth is also being developed as a zoning tool to produce denser, more clustered communities where there is less reliance on the car, and greater emphasis on placing homes nearer to where people work and play. Four years ago, the six-county region (all with their own independent zoning commissions and departments) adopted a growth plan that designated some areas for development while concentrating growth more densely in others. The region's local governments are not compelled to follow the Blueprint, which runs through to 2050, but the general thrust of increasing density in mixed- use developments appears to be working. According to a report in the Wall Street Journal, between 2004 and 2007, the number of projects with apartments, condominiums and town houses for sale in the region increased by 533 percent, while the number of subdivisions with homes on lots bigger than 5,500 square feet fell by 21 percent. At the time the Blueprint was adopted, public approval ratings for the project stood at 80 percent.

It is almost, Murphy states, a Europeanization of key US cities where there are extremely dense city centers with villages on the outskirts linked to the core via good public transportation systems. “Zoning in the future will reflect these changes that are taking place and it will look increasingly European-like,” he says.

Time is of the essence
But, as with all issues related to planning, zoning and entitlement, it takes time. Over the past decade, the amount of time spent in dealing with authorities has increased dramatically so much so that private equity real estate firms and developers now face an entitlement process of up to five years for major development projects that may have the potential for impact on a region or county's general master plan. “The entitlement process has definitely got longer over the past 10 years,” says Sid Dunmore, principal of Sacramento-based private equity firm Dunmore Capital.

Set up in 2005, Dunmore targets unentitled land in northern and central California counties, with the intention of acquiring, entitling and reselling the land to public homebuilders. Dunmore says the firm can deal with upward of 50 different counties and more than 100 city governments in the course of zoning land for development, all of which have individual policies and programs for addressing land use and long-term development objectives and most of which have their own supervisory and planning commission boards. That doesn't even include the need to deal with other government agencies including schools, police, fire, wildlife, fisheries and gaming and FEMA, the US Federal Emergency Management Agency.

US zoning is an extremely fragmented affair – indeed Houston, Texas has no zoning laws at all. But more often than not, private equity real estate firms will be faced with a deluge of zoning regulations and requirements, particularly if they have a multiple-city, county and state redevelopment strategy. In the course of gaining the necessary permits to redevelop Penn House Commons, Meridian says it always had a contingency plan in place to develop the site in accordance with th existing zoning.

During his previous role as president of Forest City Residential West and Forest City Stapleton, Vilkin spearheaded the redevelopment of the old Stapleton International Airport in Denver into a “smart growth” community comprising 4,700 acres, more than 12,000 homes and 10 million square feet of commercial and retail space. A spokesman for Forest City Stapleton said the ethos of the project was about creating a “community” where it was possible to “shop and walk without adding to air pollution, it's about the quality of the environment.” The scheme – which broke ground in 2001, six years after the airport closed down – took the co-operation of state, county and local government agencies, Vilkin adds, to get the necessary zoning permits. There is, he adds, a need for a regional vision when it comes to large-scale smart growth developments.

But as in Sacramento, this is happening in parts areas of the US. San Francisco's Mission Bay development project, set up in 1998, was formerly the railyard of the Southern Pacific Railroad Company and covered 303 acres of land between San Francisco Bay and Interstate 280. The project today boasts the headquarters of the California Institute for Regenerative Medicine; the research campus of the University of California, San Francisco; the northern terminus of the Third Street Light Rail Project of the San Francisco Municipal Railway; the northern terminus of Caltrain, the commuter train service running between San Jose and San Francisco; the first branch of the San Francisco Public Library in more than 40 years and around 6,000 housing units and six million square feet of office space.

“It seems counter-intuitive, but you have to ask whether there is a connection between quality of life and density. People think density is about cars, traffic and congestion,” Vilkin says. “That's not necessarily the case.” The US is too diverse a country for density and smart growth to become a wholesale national trend, but it will become increasingly prevalent in many of the US' urban centers. Vilkin continues: “We have crossed the tipping point. Living patterns have now started to change and some cities are adapting very quickly.”


Global funds
Beacon Capital Strategic Partners VI Beacon Capital Partners Boston Europe/US office $6,000
Brookfield Real Estate Opportunity II Brookfield Asset Management Toronto Global diversified $1,000
Cerberus Real Estate II Cerberus Real Estate Capital Management New York Global diversified $2,000-$3,000
DLJ Real Estate Partners IV Credit Suisse New York Global diversified $2,000
Dune Real Estate Partners II Dune Real Estate Partners New York Global diversified $1,250
GDP Global Real Estate Opportunity Fund GDP Global Fund Managers New York Global diversified $1,000
Lehman Brothers Real Estate Partners III Lehman Brothers New York Global diversified $3,000
MSREF VII International Morgan Stanley Real Estate New York Global diversified $12,000
Perella Weinberg Partners Real Estate Fund II Perella Weinberg Partners New York Global diversified €1,600
Starwood Global Opportunity Fund VIII Starwood Capital Greenwich (CT) Global diversified $1,500
Walton Street Real Estate Fund VI Walton Street Capital Chicago Global diversified $2,500
Global funds subtotal $36,602
Americas funds
Arden Real Estate Fund I Arden Group Philadelphia US diversified $125
Arsenal Real Estate Fund II Arsenal Real Estate Funds New Jersey US diversified $250
Avenue Real Estate Fund Avenue Capital New York US distressed $300
Berkshire Multifamily Value Fund II Berkshire Property Advisors Boston US multi-family $600
Black Creek Mexico Residential Fund Black Creek Group Denver Mexico diversified $500
Broadway Real Estate Partners Fund III Broadway Partners New York US office $1,000
Capri Urban Investors Capri Capital Partners Chicago US urban diversified $1,200
CIM Urban Real Estate Fund III CIM Group Los Angeles California diversified $750
Clarion Development Ventures III ING Clarion Partners New York US development $350
Colony Realty Partners III Colony Capital Los Angeles Global diversified $1,000
Concierge Apartment Fund Concierge Asset Managment Tiburon (CA) US multi-family $250
Cornerstone Apartment Ventures III Cornerstone Real Estate Advisors Hartford (CT) US residential $400
Cornerstone Hotel Income & Equity Fund II Cornerstone Real Estate Advisors Hartford (CT) US hospitality $600
Coventry Real Estate Fund III Coventry Real Estate Advisors New York US retail $400
CREF IV Calare Properties Hudson (MA) US northeast diversified $30
N/A Crescent Hotels and Resorts Fairfax (VA) US hospitality $350
Crocker Partners IV Crocker Partners Boca Raton (FL) US diversified $250
Cronus Capital Fund I Cronus Capital New York US diversified $200
Crown Capital Opportunities Fund Crown Capital St. Louis US diversified $200
Cypress Realty Fund VI Cypress Real Estate Advisors Austin (TX) US diversified $425
Dunmore Capital Fund Dunmore Capital Sacramento (CA) California development $200
Embarcadero Capital Partners Fund II Embarcadero Capital San Francisco US office $400
Equastone Value Fund III Equastone Real Estate Investment Advisors San Diego US diversified $350
Fidelity Real Estate Growth Fund III Fidelity Boston US diversified $750
Fremont Strategic Property Partners III Fremont Realty Capital San Francisco US diversified $750
Greater Washington Life Sciences Fund JBG Companies/Scheer Partners Chevy Chase/Rockville (MD) US life sciences $100
Grosvenor New York Multifamily Fund Grosvenor US Philadelphia US residential $400
Guardian Realty Fund III Guardian Realty Investors Bethesda (MD) Mid-Atlantic diversified $500
Hanover Real Estate Pertners III Hanover Financial Los Angeles Western US diversified $250
Hearthstone Path of Growth II Hearthstone Advisors San Rafael (CA) US development $500
House Investment RE Opportunities Fund IV House Investments Indianapolis US development $30
Hunter Chase Real Estate Opportunity Fund Hunter Chase Irving (TX) US diversified $250
Invesco Real Estate Fund III Invesco Real Estate Dallas US diversified $500
Jamestown Coinvest IV Jamestown Properties Atlanta Southeast US diversified $500
JBC Opportunity Fund III John Buck Co. Chicago US diversified $300
KBS Best Property Fund II KBS Realty Advisors Newport Beach (CA) US diversified $500
Kelly Capital Real Estate Special Situation Fund Kelly Capital San Diego US diversified $100
Kimpton Hospitality Partners II Kimpton Hotel San Francisco US hospitality $300
KMF Senior Housing Investors Fund KMF Senior Housing Investors Chicago US senior housing $250
LaSalle Canada Income & Growth Fund II LaSalle Investment Management Chicago Canada diversified $350
LaSalle Medical Office Fund II LaSalle Investment Management Chicago US medical office $350
LaSalle Mexico Fund LaSalle Investment Management Chicago Mexico diversified $500
LBA Realty Fund III LBA Realty Irvine (CA) US office/industrial N/A
Lazard Freres Strategic Realty Investors III Lazard Freres & Co. New York US healthcare $500
Lexin AmTrust Real Estate Partners II Lexin Capital New York US residential $150
Los Angeles Development Partners Chadwick Saylor Los Angeles Southern California urban $150
Lubert-Adler Real Estate Fund VI Lubert-Adler Philadelphia North America diversified $2,600
Macfarlan Special Situations Fund Macfarlan Capital Partners Dallas US distress $300
MacFarlane Urban Real Estate Fund III MacFarlane Partners San Francisco US urban diversified $1,500
Meridian Real Estate Partners Fund III Meridian Development Partners New York US distressed $100
MGRA Genesis Real Estate Fund Mayfield Gentry Realty Detroit US diversified $150
Miller Global Fund V Miller Global Properties Denver US diversified $400
Urban Strategy America Fund New Boston Fund Boston US urban redevelopment $200
O'Conner North American Property Partners O'Conner Capital Partners New York North American diversified $750
Palisades Distressed/Value-Added Fund Palisades Financial Englewood Cliffs (NJ) US diversified $200
Genesis Workforce Housing Fund Phoenix Realty New York Los Angeles residential $175
Metropolitan Workforce Housing Fund Phoenix Reality New York US residential $250
N/A The Carlyle Group Washington DC Latin America diversified $400 – $600
Paladin Realty Latin America Investors III Paladin Realty Los Angeles Latin America diversified $500 – $800
PRP II Perseus Realty Partners Washington, DC US diversified $200 – $250
Praedium Fund VII Praedium Group New York US diversified $700
PLA Industrial Fund II Prudential Real Estate Investors Parsippany (NJ) Mexico industrial $140
PLA Residential Fund II Prudential Real Estate Investors Parsippany (NJ) Mexico residential $400
PLA Residential Fund III Prudential Real Estate Investors Parsippany (NJ) Latin America residential $1,000
Prudential Senior Housing Partners III Prudential Real Estate Investors Parsippany (NJ) US senior housing $300
RCG Longview Equity Fund Ramius Capital Group New York US diversified $300
Sarofim Multifamily Fund I Sarofim Realty Advisors Dallas US residential $150
Sentinel Realty Partners VII Sentinel Real Estate Corporation New York US diversified $200
Somera Realty Value Fund II Somera Capital Santa Barbara (CA) US diversified $300
Square Mile Fund I Square Mile Capital Management Greenwich (CT) US distressed $300
Stockbridge Real Estate Fund III Stockbridge Capital Partners San Mateo (CA) US diversified $3,000
Strategic Office Fund I NNN Realty Advisors Santa Ana (CA) US net-leased office/retail $250
Strategic Partners Value Enhancement Fund II Strategic Capital Partners Chicago US diversified $400 – $500
Stratford Lane Fund III The Stratford Company Tacoma (WA) US land $300
TA Associates Realty Fund VIII TA Associates Boston US diversified $900
TA Associates IX TA Associates Boston US diversified $1,750
Tishman Speyer Real Estate Venture VII Tishman Speyer New York US diversified $2,000
Thor Urban Retail Fund II Thor Equities New York US retail $500
Urban American Real Estate Fund II Urban American New Jersey US residential $200
Walton Street Mexico Fund I Walton Street Capital Chicago Latin America diversified $350
Americas funds subtotal $39,675


Europe funds
Aberdeen Property Fund Russia Aberdeen Property Investors Stockholm Russia diversified €250
Blackstone Real Estate Partners Europe III The Blackstone Group New York Europe diversified €3,000
Capmark UK Realty Partners Fund Capmark Financial Horsham (PA) UK diversified €250
N/A Catalyst Capital London Europe diversified €500
Columbus UK Real Estate Fund Schroder Property Investment London UK diversified £250
Cordea Savills Turkish Property Ventures Fund Cordea Savills London Turkey diversified € 400
Corestate German Commercial Properties Corestate Capital Zurich German commercial €500
East Capital Russian Property Fund East Capital Private Equity Stockholm Russia diversified €200
Elgin Capital Fund Elgin Capital Dublin Berlin residential €60
Emerging Property Fund II Global Finance Athens Southest Europe diversified € 350
Endurance Health Care Orco Property Group Luxembourg Europe healthcare €150
Endurance Logistics and Light Industrial Orco Property Group Luxembourg Europe industrial €150
Endurance Office II Orco Property Group Luxembourg Europe industrial €200
EPI Healthcare 1 EVLI Bank Helsinki Finnish Healthcare €60
European Continental RE Fund Clearbrook Capital Partners London Europe diversified £1,000
European Ventures Fund III LaSalle Investment Management Chicago Europe diversified $1,250
Forum European Realty Income III Forum Partners Greenwich (CT) Europe diversified $750
GED Real Estate Eastern Investments GED Spain Europe diversified €100 – €150
German Aktiv Property Fund Teesland iOG London German diversified €370
Global Property Fund Global Finance Athens Balkan development $150 – $200
Heitman European Industrial Property Partners Heitman Chicago Europe industrial €200 – €300
Heitman European Property Partners IV Heitman Chicago Europe diversified €500 – €750
Hexagone Morley/DTZ London French diversified € 210
Meyer Bergman European Retail Partners Meyer Bergman London Europe retail € 600
MIL Equity Partners EquityInvest Boston Central/Eastern Europe diversified $100
Moor Park Real Estate Fund Moor Park Capital London Europe diversified €1,200
Mosiac Central and Eastern European II Mosaic Property London Central/Eastern Europe diversified €200
Nordic Retail Fund Protego Real Estate Investors London Nordic retail €215
Orion European Real Estate Fund III Orion Capital Partners London Pan-Europe diversified € 1,000
PIK Real Estate Fund PIK Group Moscow Russia diversified $1,000
Realstar European Capital I Realstar Group Toronto Europe alternative sectors €300
Schroder Italian Property Fund II Schroder Property Investment London Italy diversified €250 – €350
The Sava Fund Chayton Capital London Southest Europe diversified €150
UK Property Ventures No. 1 Fund Cordea Savills London UK diversified £200
Valad Opportunity Fund II Valad Property Group Sydney UK diversified £250 – £400
Europe funds subtotal $24,235
Asia/RoW funds
N/A Actis Advisors Mumbai India diversified $250 – $300
Aetos Capital Asia Fund III Aetos Capital New York Asia diversified $2,500
AEW Value Investors Asia AEW Singapore Asia diversified $350
AG Asia Realty Fund Angelo Gordon New York Asia diversified $300
Anand Rathi Realty Fund Anand Rathi Mumbai India diversified $115
Appian Indian Real Estate Portfolio Appian N/A India diversified $150
Asia Real Estate Opportunity Fund I Standard Chartered/Istithmar Singapore Pan-Asia diversified $750
Asia Value Fund ING Real Estate Investment Management Hong Kong Asia diversified $1,000
CapitaRetail China Development Fund II CapitaLand Singapore China retail $600
Catalyst Samsara India Opportunity Fund I Catalyst Capital/Samsara Capital London/Mumbai India diversified $130
China Opportunity Fund II ING Real Estate Investment Management Hong Kong Greater China diversified $750
CIMB-Mapletree Real Estate Fund 2 CIMB Real Estate/Mapletree Capital Malaysia/Singapore SE Asia diversified $290
Citigroup Property Investors Asia II Citigroup Property Investors New York Asia diversified $3,000
Horizon Realty Fund Capitaland/Pantaloon Retail Singapore/Mumbai India retail $350
Carlyle Santa Fey Real Estate Fund The Carlyle Group Washington DC India diversified $300
CIMB-Mapletree Real Estate Fund II CIMB Group/ Mapletree Capital Man Malaysia/Singapore Asia diversified $290
Cordea Nichani Indian Opportunities Number One Cordea Savills London Indian development $200
DHFL Venture Capital Fund II Dewan Housing Finance Mumbai India residential $200
Fortune Capital Holdings PFH Investment Advisory Mumbai India hospitality $200
N/A Greenwich Group International New York India development $1,000
HDFC Real Estate Venture Fund II HDFC Mumbai India hospitality $750
India Real Estate Opportunities Fund II IREO New York India development $400
Indiareit Indiareit Fund Advisors (Piramal) Mumbai India development $800
N/A Indiareit Mumbai India diversified $200 – $250
N/A SHUAA Partners Dubai Saudi Arabia hospitality $534
Kotak India Realty Fund Kotak Realty Fund Mumbai India diversified $350
Kshitij Venture Capital Fund Pantaloon Retail/Dalmia Group Mumbai India retail $60
LaSalle Asia Opportunity Fund III LaSalle Investment Chicago Asia diversified $1,000
LaSalle Japan Logistics Fund II LaSalle Investment Chicago Asia logistics $400
Leopard Cambodia Fund Leopard Capital Hong Kong Cambodia diversified $100
Lotus Hotel Investment Fund Lotus Hotel Investment Fund Hong Kong Asian hotels $1,000
Milestone Domestic Scheme II Milestone Capital Advisors Mumbai India diversified $250
New City Asia Partners New City Capital Tokyo Asia diversified $1,000
Pacific Alliance China Land Fund Pacific Alliance Group Hong Kong China diversified $400
Pradera China fund Pradera Asset Management London China retail $3,000
Protego Qudos Vietnam Property Fund Protego Real Estate Investors London Vietnam residential $200
Protego WIRE Indian Office Development Fund Protego Real Estate Investors London Indian office $150
Red Fort Real Estate India Fund II Red Fort New Delhi India diversified $795
Saffron Investment Advisors Saffron Investment Advisors Mumbai India development $500
SHUAA Hospitality Fund I SHUAA Partners Dubai MENA hospitality $200
Tano India Real Estate Fund Tano Capital San Mateo (CA) India diversified $100-$500
Tishman Speyer India Fund Tishman Speyer/ICICI New York India diversified $600
Tishman Speyer GSC China Fund Tishman Speyer/GSC New York China diversified $500
Trikona Trinity Capital Trikona Capital Grand Cayman India development $300
Triseas Korea Property Fund II Doran Capital Partners Seoul Asia diversified $600
Unitech International Realty Fund I Unitech New Delhi India residential $500
N/A West University Capital Houston India diversified $300
Asia/RoW funds subtotal $29,894
Funds of funds
4IP European Real Estate Fund of Funds Sal. Oppenheim Zurich Europe fund of funds €300
AIPP Asia Select Aberdeen Property Investors Stockholm Asia fund of funds $600
Aberdeen Indirect Property Partners II Aberdeen Property Investors Stockholm Europe fund of funds € 600
Aberdeen Indirect Property Partners Active Aberdeen Property Investors Stockholm Europe fund of funds € 500
American Value Partners Fund I American Value Partners Los Angeles US fund of funds $400
Clerestory Small Cap Real Estate Fund I Clerestory Capital Partners New York Global diversified $600
Composition Capital Americas Composition Capital Partners Amsterdam Americas fund of funds $300
Composition Capital Asia II Composition Capital Partners Amsterdam Asia fund of funds $400
Composition Capital Europe II Composition Capital Partners Amsterdam Europe fund of funds €350
Continental European Fund II Schroder Property Investment London Europe fund of funds €250
Franklin Templeton Asian Real Estate Fund Franklin Templeton Institutional San Mateo (CA) Asia fund of funds $500
Franklin Templeton European Real Estate Fund of Funds 2 Franklin Templeton Institutional San Mateo (CA) Europe fund of funds € 300
Franklin Templeton Private Real Estate Fund Franklin Templeton Institutional San Mateo (CA) International fund of funds $300
Franklin International Real Estate Fund 3 Franklin Templeton Institutional San Mateo (CA) Global fund of funds $300
Goldman Sachs Real Estate Partners Goldman Sachs New York Global fund of funds $1,000
Goodman Eurozone Fund of Funds II Aberdeen Property Investors Stockholm Europe fund of funds € 500
Landmark Real Estate Fund of Funds Landmark Partners Simsbury (CT) Global fund of funds $250
Madison Harbor Private Real Estate Partners Madison Harbor Capital New York Global fund of funds $400
Metropolitan Real Estate Partners V Metropolitan Real Estate New York US fund of funds $250
Metropolitan Real Estate Partners Int'l II Metropolitan Real Estate New York Europe fund of funds $200
Newlin Realty Partners Newlin Capital Partners Princeton (NJ) Global fund of funds $130
Penn Square Global Real Estate Fund II Penn Square Capital Radnor (PA) Global fund of funds $300
Portfolio Advisors Real Estate Fund III Portfolio Advisors Connecticut Global fund of funds $300
Funds of funds subtotal $9,979


Global funds
Blackstone Real Estate Partners VI The Blackstone Group New York Global diversified Final N/A $900 Apr-08
Equity International Fund IV Equity International Properties Chicago Global diversified Final N/A $500 Feb-08
Northwood Real Estate Partners I Northwood Investors Greenwich (CT) Global diversified Final $1,250 $1,250 Jul-08
Rockpoint Real Estate Fund III Rockpoint Group San Francisco Global diversified Final N/A $2,500 Apr-08
Westbrook Real Estate Fund VIII Westbrook Real Estate Partners New York Global diversified Final N/A $2,500 Feb-08
WCP II Westport Capital Partners Westport (CT) Global diversified First $500 $200 May-08
Whitehall Street International 2008 Goldman Sachs New York Global diversified Final N/A $2,343 Jun-08
Global funds subtotal $10,193
Americas funds
AG Realty Fund VII Angelo Gordon New York US diversified Final $1,250 $1,250 Apr-08
Apollo Domestic Emerging Markets Fund Apollo Real Estate Advisors New York US diversified First $525 $420 May-08
Apollo Value Enhancement Fund VII Apollo Real Estate Advisors New York US diversified Final N/A $758 Jul-08
BlackRock Retail Opportunity Fund BlackRock New York US retail/mixed-use Final N/A $503 Feb-08
Canyon Johnson Urban Fund III Canyon Johnson Los Angeles US urban diversified Final N/A $1,000 Apr-08
Richard Ellis Richard Ellis Los Angeles US diversified Final N/A $2,100 May-08
DRA Growth & Income VI DRA Advisors New York US diversified Final N/A $1,250 Mar-08
Exeter Industrial Value Fund Exeter Property Group US industrial N/A N/A $357 Jan-08
FIP Prosperitas II Prosperitas Sao Paolo Brazil diversified Final N/A $600 Apr-08
Harrison Street Real Estate Partners II Harrison Street Real Estate Capital Chicago US diversified Second $300 $240 Jun-08
Intercontinental Fund IV Intercontinental Real Estate Corporation Boston US diversified Final $250 $200 Jun-08
JER Real Estate Partners IV JER Partners McLean (VA) US diversified Final $1,250 $772 Mar-08
LaSalle Income and Growth Fund V LaSalle Investment Management Chicago US diversified Final N/A $728 Jun-08
Phillips Edison Fund IV Phillips Edison Cincinnati US retail/distressed First $500 $145 Jan-08
RLJ Real Estate Fund III RLJ Development Maryland US/Canada Final N/A $1,200 Jan-08
Savanna Real Estate Fund I Savanna Investment Management New York US diversified Final N/A $313 Feb-08
Urdang Value-Added Fund II Urdang Capital Management Plymouth Meeting (PA) US diversified Final N/A $463 Feb-08
Vinum Capital Partners I Vinum Capital Management California US wineries Final N/A $250 May-08
Western National Realty Fund II Western National Group California US multifamily First $300 $200 Feb-08
Williams Opportunity Fund Williams Realty Advisors Atlanta US diversified Final $120 $104 Mar-08
Americas funds subtotal $12,853
Europe funds
Apollo European Real Estate III Apollo Real Estate Advisors New York Europe diversified Final N/A $1,400 Mar-08
Carlyle Europe Real Estate Parnters III The Carlyle Group Washington DC Europe diversified Final N/A € 2,200 Jun-08
Catalyst European Property Fund Catalyst Capital London Europe diversified Second €400 €168 May-08
Corestate German Residential Limited Corestate Capital Zurich German residential Final N/A €486 May-08
Emerging Europe Fund Europa Capital Partners London Eastern Europe Final N/A € 150 Jun-08
Europa Fund III Europa Capital Partners London Western and Central Europe diversified Final N/A € 600 Jun-08
EPI Special Opportunities Curzon Global Partners/AEW Europe London/Paris Pan-European diversified Final N/A €800 May-08
European Strategic Real Estate Fund Quinlan Private Dublin Europe diversified Final N/A € 400 May-08
Italian Opportunities II Cordea Savills London Italy diversified Final €300 €360 Jan-08
MGPA Europe Fund III MGPA London Europe diversified Final N/A $1,300 Jun-08
Moorfield Real Estate Fund II Moorfield Group London UK diversified Final N/A £400 Feb-08
Niam Fund IV Niam AB Stockholm Nordic and Baltics diversified Final N/A €700 Jan-08
Resolution Real Estate III Resolution Property London UK and Europe diversified Final N/A €800 Jan-08
Rockspring TransEuropean Property IV Rockspring Property Inv Managers London EU diversified Final €275 €600 Mar-08
Europe funds subtotal $14,123
Asia/RoW funds
ARA Asia Dragon Fund ARA Asset Management Hong Kong Asia diversified Final $1,500 $1,130 Jun-08
Citic CapitaLand Business Park Fund CapitaLand/CITIC Trust Singapore/China China office Final N/A $73 Jun-08
JP Morgan Greater China Property Fund JP Morgan Asset Management New York Greater China diversified Final N/A $600 May-08
MGPA Asia Fund III MGPA London Asia diversified Final N/A $3,900 Jun-08
Strategic Partners Asia II Richard Ellis Investors Los Angeles Asia diversified Final N/A $400 Feb-08
The Pearl Qatar Development Fund United Development Company Qatar Qatar diversified Final $300 $300 Jan-08
Trophy Property Development Fund Winnington Capital Hong Kong China diversified Final $750 $1,050 Apr-08
Asia/RoW funds subtotal $7,453
Fund of funds
HRJ Global Real Estate Fund III HRJ Capital San Francisco Global fund of funds Final N/A $155 Mar-08
Penn Square Global Real Estate Fund I Penn Square Capital Radnor (PA) Global fund of funds Final $100 $231 May-08
SVP Real Estate I Sports Venture Partners Chicago Global fund of funds Final N/A $32 Mar-08
Fund of funds subtotal $418
TOTAL $45,039

The big boysFunds in market with targets of $2bn or more

Aetos Capital Asia diversified $2,500
Beacon Capital Partners Europe/US office $6,000
The Blackstone Group Europe diversified €3,000
Cerberus Real Estate Capital Management Global diversified $3,000
Citigroup Property Investors Asia diversified $3,000
Colony Capital US distressed $2,000
Credit Suisse Global diversified $2,000
LaSalle Investment Management Asia diversified $2,500
Lehman Brothers Global diversified $3,000
Lubert-Adler US diversified $2,600
Morgan Stanley Real Estate Global diversified $12,000
Pradera Asset Management China retail $3,000
Stockbridge Capital Partners US diversified $3,000
Tishman Speyer US diversified $2,000
Walton Street Capital Global diversified $2,500