WHI Real Estate Partners V Raises $385M
David Rosenbaum, Managing Director, WHI Real Estate Partners LP. Photo by Andrew Collings, courtesy WHI Real Estate Partners LP
Approximately 18 months after the launch of WHI Real Estate Partners V LP, WHI Real Estate Partners LP announced the final closing of the fund with capital commitments totaling $ 385 million.
The vehicle, the fifth in a line of discretionary private mutual funds, exceeded its target of $ 325 million by a full $ 60 million.
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“We were delighted – but not really surprised – with the success of this fundraiser, despite the logistical challenges posed by the pandemic,” David Rosenbaum, managing director at WHI Real Estate Partners LP, told Commercial Property Executive.
“Some of our longtime limited partners were significantly more committed to Fund V than our previous fund, and we have also added a number of excellent new partners.” Fund IV closed its final close in March 2018 after exceeding its target of $ 250 million with capital commitments of $ 285 million.
Fund V attracted investment from a wide variety of investors including university foundations, foundations, healthcare systems, asset management firms, and family offices. The vehicle will emulate the opportunistic investment program of its WHIREP predecessor funds. However, it plans to acquire assets with a total cost of $ 1 billion to $ 1.1 billion, compared to the target acquisition range of $ 750 million to $ 850 million for Fund IV.
Open minded
The pandemic led to a shift in the commercial real estate market last year. However, Fund V will invest in the same types of investments as its predecessor funds and will target a range of industrial, residential, hotel, office and other real estate in the United States
Jim Orth, Managing Director, WHI Real Estate Partners LP. Photo by Andrew Collings, courtesy WHI Real Estate Partners LP
“We try to be very nimble in any investment environment and we are always looking for opportunities in a wide range of real estate sectors and geographic markets,” said Jim Orth, managing principal at WHI Real Estate Partners LP, to CPE. “Right now, some of the most interesting situations we’re seeing are in the industrial, apartment and hotel sectors, but it’s likely that our focus will evolve over the course of this fund’s investment period.”
Fund V is around 16 percent invested to date. Initial investments include Capital Collective, a 154-unit luxury condo in Old Town Savannah, Georgia. The fund invested in the asset through a joint venture with Two Capital Partners. In South Reno, Nevada, Fund V partnered with McKenzie Properties to create an industrial development of six buildings spanning 530,000 square feet. Other investments include multi-family communities in Naples, Florida and metropolitan Washington, DC
PJT Park Hill, a PJT Partners Inc. company, acted as the exclusive placement agent for Fund V while Kirkland & Ellis LLP advised WHIREP on the final closing.