Crow Holdings Announces Closing of Ninth U.S. Diversified Value-Add Real Estate Fund
Crow Holdings, a leading national real estate investment and development firm, announced today the final closing of Crow Holdings Realty Partners IX, L.P. (“Fund IX” or the “Fund”). Managed by Crow Holdings’ investment management company, Crow Holdings Capital, the Fund invests in value-add real estate assets across the U.S., primarily in industrial and multifamily as well as in specialty sector opportunities.
Fund IX was oversubscribed with approximately $2.3 billion of commitments, above its original hard cap of $2.0 billion, and received strong support from existing investors and significant participation from new investors including global banks and insurance companies, pension plans, family offices and high net worth individuals. The Fund has also closed on co-investments totaling $265 million in equity capital, resulting in approximately $2.6 billion in total investable equity for the strategy. Fund IX marks the firm’s largest fundraise to-date and is a significant increase from the $1.3 billion of commitments raised for the predecessor fund.
The Fund focuses on diversified value-add investment and development opportunities in multiple property types across major U.S. markets. These opportunities today are primarily in industrial and multifamily as well as specialty sectors including manufactured housing, convenience and gas, self-storage, and student housing. Entirely raised during the Covid-19 pandemic, the Fund also began investing during this challenging time. To date, more than 63% of the Fund’s capital has been committed across 62 investments, located primarily in the high-growth Southwest, Southeast and Mountain regions of the U.S.
“We are grateful for our investment partners’ confidence in our team’s continued ability to deliver results for them,” said Michael Levy, CEO of Crow Holdings. “This successful close demonstrates appreciation for our firm’s longstanding track record, real estate expertise, and especially our early recognition of the significant tailwinds behind logistics and e-commerce demand, shifting population demographics, and changing housing preferences as integral to our differentiated investment strategy.”
“With more than 63% of Fund IX’s capital committed, we are already generating strong investment results, including returning capital early in the Fund’s life cycle through quick realizations. This performance is a credit to the team that has worked hard during this unprecedented and challenging time to continue to deliver on our commitment to all partners,” said Bob McClain, CEO of Crow Holdings Capital. “We believe that our pipeline – particularly in the industrial, multifamily and specialty sectors – is going to continue to provide attractive opportunities to drive results throughout the Fund’s lifespan.”
Hodes Weill Securities, LLC acted as placement agent for Fund IX.
About Crow Holdings
Crow Holdings is a leading national real estate investment and development firm with a 70-year operating history and $21 billion of assets under management. With a strong track record of performance across property types and market cycles, Crow Holdings pursues unique investment opportunities through a range of strategies and risk-return profiles, creating value for its investors, partners and communities. Operating from 17 offices across the U.S., Crow Holdings has extensive industry reach with expertise in multifamily, industrial, office and specialty sectors, having developed or acquired more than 225 million square feet. Our founding principles of partnership, collaboration and alignment of interests remain central to Crow Holdings today.