Fundraising - APRIL 1, 2014

CenterSquare markets third value-added fund

by Andrea Waitrovich

CenterSquare Investment Management has begun marketing its third value-added fund. CenterSquare Value-Added Fund III has a $500 million fundraising goal. A first closing is anticipated in second quarter 2014, and a final closing date is anticipated in the second quarter 2015.

The fund will invest in middle-market, transitional real estate assets in the United States, focusing on the office, multifamily, retail, industrial, parking and hospitality sectors.

“We believe that a middle market, value-add real estate strategy represents the most attractive space in the market for creating value and reducing risk,” said P.J. Yeatman, head of private real estate for CenterSquare, in a statement. “Fund III will be an acquirer of transition and a seller of stability.”

The firm closed Urdang Value-Added Fund II in February 2008 with capital commitments totaling $462.8 million. The funds investments include a participating loan to Ridgeback Partners for its acquisition of 291 finished lots and 17 homes in the Hillside development, located north of Summerlin in Las Vegas; The Palazzo, a 300-unit class A multifamily community in San Marcos, Texas; the 500,000 square-foot Station Square office complex in Silver Spring, Md.; Eden Condominiums in Boca Raton, Fla.; Louetta Central Shopping Center, a 180,000-square-foot shopping center in Houston; and The Heritage at Boca Raton and Villas at Hermann Park in Houston.

The fund series debuted with Urdang Value-Added Fund, which closed in June 2004 with $267.3 million in committed capital. The fund was fully invested during the three-year investment period across 21 investments.

CenterSquare was founded in 1987 under the name Urdang with an exclusive focus on institutional investment-grade real estate. CenterSquare offers a variety of strategies and products, managing approximately $6.0 billion in public real estate securities through CenterSquare Investment Management and approximately $1.8 billion in debt and private equity real estate investments through CenterSquare Investment Management Holdings, as of Dec. 31, 2013.

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