Real estate investment firm Cortland has raised $1.5bn (€1.3bn) for its sixth US value-add multifamily fund.
The company said the capital raised for Cortland Enhanced Value Fund (CEVF) VI and its affiliated entities exceeded its $1bn target, at final close.
The fund received increased support from existing investors and substantial commitments from new investors. Around 25% of commitments came from foreign investors, with institutional investors accounting for 80% of the total, Cortland said.
As previously reported, the New York State Common Retirement Fund (NYSCRF) backed the Cortland apartment fund with a $300m commitment.
Cortland’s previous fund in the series, which had a final close in May 2021, raised $650m in total. NYSCRF made a $150m commitment to the fifth fund in 2020.
Jason Kern, Cortland’s president of investment management, said Fund VI aims to build on Cortland’s track record by focusing on high-growth US markets in the Sunbelt and Mountain West.
Kern added: “Cortland has been patient and disciplined in not deploying abundant available value-add capital from mid-2022 to late 2023 during a challenging acquisition environment that corresponded with the unprecedented rise in US interest rates.
“However, Cortland is now capitalising on discounted asset prices and higher yields in an improving operating and capital markets environment, and Fund VI is now nearly 30% committed. By exceeding our initial target by 50%, it’s clear the opportunity to invest with Cortland in this sector at this time resonated strongly with investors.”
Steven DeFrancis, Cortland’s founder and CEO, said: “We believe the successful raise of Fund VI underscores institutional capital’s strengthening demand for multifamily real estate and confidence in Cortland’s industry expertise and financial stewardship over our nearly 20-year history.
“We are grateful for the trust our investment partners have placed in us and look forward to the opportunity to continue to deliver positive results for them.”
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