Arden Group raises $500m for third real estate fund

Arden Group has completed the final close of the firm’s third fully discretionary equity fund, Arden Real Estate Partners III (AREP III), with $500 million in capital commitments.

The fund hit its hard cap and exceeded the initial target of $300 million, with 60 percent of the capital raised from institutional investors.

The firm said AREP III has deployed $350 million already in some opportunistic acquisitions, due to the dislocation created by the global pandemic in all three of its verticals: light/last-mile industrial, office and hotel properties.

“Arden remains a high conviction real estate private equity fund manager for us,” said Allan Majotra, managing partner at 5Capital Funds Placement, which served as an adviser to the firm. “It is clear that a number of our institutional investors and family offices agree with us, and that is reflected in both the re-ups, as well as a number of first time LPs, in AREP III.”