USAA Real Estate Co., a subsidiary of USAA, a financial services company serving military families with $138 billion of assets under management, has launched the U.S. Government Building Open-End Fund, a core strategy fund. It is a conversion fund from a closed-end to an open-end vehicle. As a closed-end fund, equity commitments were made primarily from domestic investors with a total of $490 million. With an open-end fund structure, the fund aims to attract international investors as well. The vehicle has a $2 billion fundraising goal. The near-term equity fundraising target is $450 million to $500 million and could include as much as $400 million from non-U.S. investors.
The U.S. Government Building Open-End Fund focuses on well-located institutional office properties that are at least 80 percent leased to U.S. federal government or local government entities.
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