GreenOak Real Estate LP raised $1.55 billion for its third U.S. real estate fund, Bloomberg News reported, citing partner and founder Sonny Kalsi.
The fund has the ability to spend roughly $5 billion, through leverage, and is the largest investment vehicle for GreenOak, which was founded by former Morgan Stanley property executives.
Kalsi told Bloomberg that the fund is targeting returns of about 15% through value-add real estate investing in Seattle, Miami, New York, San Francisco, Los Angeles, Boston and Washington, D.C., among other cities. The fund will purchase "unloved or undermanaged" hotel, multifamily and office properties in markets with diverse employers and large education centers, Kalsi said.
Investors in the fund include the New York State Common Retirement Fund, the Teachers' Retirement System of Oklahoma, the Tennessee Consolidated Retirement System and the City of Austin Police Retirement System, according to Bloomberg data.
