Last updated: 12:38 / Friday, 4 April 2014
BNY Mellon IM Boutique

CenterSquare Announces Value-Added Fund III for Institutional Investors

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CenterSquare Announces Value-Added Fund III for Institutional Investors
  • The fund will invest in middle-market, transitional real estate assets in the U.S.
  • The manager expects to raise $500 million with the first closing date in the Q2
  • The fund plans to acquire properties with capitalizations ranging from $25 million to $75
  • It is a value-added strategy, focusing on acquiring and improving assets that require physical upgrades or revisions in their capital structures

CenterSquare Investment Management, the suburban Philadelphia, PA-based real estate specialist for BNY Mellon, has launched CenterSquare Value-Added Fund III, L.P. The fund will invest in middle-market, transitional real estate assets in the U.S., focusing on the office, multifamily, retail, industrial, parking and hospitality sectors.

The fund, which is limited to qualified purchasers, is expected to raise $500 million, with the first closing date anticipated in the second quarter of 2014 and the final closing date anticipated in the second quarter of 2015.  CenterSquare said the fund plans to acquire properties with total capitalizations ranging from $25 million to $75 million.

The fund will implement a value-added strategy, focusing on acquiring and improving assets that require physical upgrades or revisions in their capital structures. "We believe that a middle market, value-add real estate strategy represents the most attractive space in the market for creating value and reducing risk," said P.J. Yeatman, head of private real estate for CenterSquare.  "Fund III will be an acquirer of transition and a seller of stability."

CenterSquare said that it will leverage the capabilities of its national network of local real estate operating partners to source, underwrite, and execute attractive value-add investment opportunities. CenterSquare also said that the fund is being designed to employ a total return strategy that may include a significant current yield component.

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