GTIS Partners closes USD716m diversified residential fund
GTIS Partners has held the closing of a USD716m residential real estate investment fund, the largest domestic diversified residential fund raised to date.
The fund’s total is inclusive of co-investment vehicles.
The new fund brings to over USD3bn the committed equity raised by GTIS Partners since the firm’s 2005 launch.
“We re-entered the US residential marketplace as early as 2009, making us one of the first real estate investment companies to deploy substantial capital in anticipation of the return of the domestic housing market,” says Tom Shapiro, president and chief investment officer of GTIS Partners. “We’ve continued to re-invest in the US, making strategic investments and seeking out new geographies where property valuations are expected to rise faster than the national average. We believe the US residential market provides some of the best risk-adjusted returns in the real estate asset class, which is evidenced by our new fund.”
The fund is approximately 60 per cent invested, with a primary focus on markets such as New York, California, South Florida, Texas, Nevada, Georgia and Arizona.
“We believe in a diversified strategy to fully take advantage of the housing recovery across different markets and the various stages of the cycle,” says Robert Vahradian, senior managing director of GTIS. “The various types of investments made post-crisis include acquiring distressed residentially-zoned land and partially completed subdivisions, land development and homebuilding, acquiring foreclosed homes for rental, and investing in urban high rise development in gateway cities.”