Oak Street Real Estate Capital closed its latest value-added fund at $1.25 billion, surpassing its $750 million target, PERE News reported.

Oak Street Real Estate Capital Fund IV raised the capital from the firm's existing investors, including the Teachers' Retirement System of the State of Illinois, Pennsylvania State Employees' Retirement System and Illinois Municipal Retirement Fund. The fund also drew capital from an undisclosed Middle Eastern investor.

The Chicago-based private equity firm focuses on the acquisition of single-tenant properties with triple-net leases. It expects to make the first acquisition for Fund IV by the end of 2017.