Fundraising - MARCH 25, 2014

Walton Street holds $1.4b close for Fund VII

by Andrea Waitrovich

Walton Street Capital has held a final close for its seventh fund on Feb. 28. The firm raised $1.4 billion for its Walton Street Real Estate Fund VII.

The fund continues Walton Street’s value-added and opportunistic investment strategy, focusing on various property types primarily in the major U.S. markets, and generally expects to employ portfolio acquisition leverage of approximately 55 percent to 60 percent.

As of the final closing, Fund VII had made 18 investments, many of which were sourced in 2012 and early 2013, in property types such as office (Boston, Chicago, Manhattan, San Diego, Seattle), retail (Maui, Denver), hotel (Chicago, San Francisco) and multifamily (southeast United States). Assets include the $28.5 million investment in the Fairmont Heritage Place, located at 900 N. Point St. in San Francisco, and three life-science office buildings in the San Diego submarket of Torrey Pines.

The Walton Street value-add/opportunistic real estate fund series has held successful closings for previous funds. Walton Street Capital held a $1.9 billion final close for predecessor fund Walton Street Real Estate Fund VI in March 2009. Walton Street Real Estate Fund V closed in June 2006 with $1.6 billion, exceeding its $1.5 billion goal. And Walton Street Real Estate Fund IV closed in January 2004 with $742 million, exceeding its $600 million target.

With its closing of Fund VII, Walton Street, Walton Street Mexico and Walton Street’s other affiliates have completed fundraises totaling $4.4 billion of equity since the global financial crisis, or more than one-half of the $8.2 billion of total equity commitments Walton Street and its affiliates have received since Walton Street’s inception in 1994.

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