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CrossHarbor Capital Partners has wrapped up the raising of $865 million in commitments for the CrossHarbor Institutional Partners Fund 2021, its tenth pooled opportunity investment vehicle. The fund is the third and largest of its Institutional Partners series, which previously totaled $540 million and $750 million, respectively.
Presently, CIP 2021 has $55 million in co-investment capital deployed across several investments as part of the fund. The closing follows the firm’s securing of $800 million for the fund in June of 2022, as reported by Institutional Real Estate Inc.
The closed-end investment vehicle, which consists of contributions from corporate and public pension plans, endowments, foundations, domestic and foreign financial institutions, sovereign entities and family offices, is being directed toward high-yield debt and equity investments in fast-growing markets, across all property sectors. The fund has a particular interest in distressed properties, as well as in those with negative liquidity, the firm said in a statement.
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As part of the investment strategy, CrossHarbor tapped Lord Green Services, an ESG-focused consulting firm to analyze the sustainability of all the properties that have and will be invested in by the fund. Presently, the firm has $8.7 billion worth of assets under management.
CrossHarbor has recently been an active investor in the high-performance Phoenix industrial market, providing $73.3 million for WestCore Properties’ purchase of Hatcher Industrial Park, a 54-acre, 906,125-square-foot industrial campus located in the city’s Loop 303 area.
Institutional opportunities
At a time of stagnated lending amid a multi-decade high federal funds rate and inaccessibly high costs of capital, some institutional investors continue to identify opportunistic investments, particularly for multifamily and industrial assets, as well as value-add developments for Class B and C office spaces.
Earlier in August, Farallon Capital Management closed on Farallon Real Estate Partners IV, which includes north of $650 million in aggregated investments. Same as CIP 2021, the fund has a fixation on industrial, multifamily, office and retail assets.
In a June 2023 market survey conducted by DLA Piper, 53 percent of respondents identified industrial facilities, particularly logistics, warehousing and cold storage, as the most attractive investment opportunity. In the same survey, medical offices, life science, data centers, manufacturing and grocery-anchored shopping centers trailed multifamily. The top cities for investment were primarily located in the Sun Belt, with 39 percent of respondents listing Austin as their most attractive option, ahead of Miami, Nashville and Raleigh-Durham.
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