Madison International Realty Closes $1.7B Fund

Ronald Dickerman, Founder & President, Madison International. Image courtesy of Madison International

Despite a volatile market, Madison International Realty has closed its latest commingled investment vehicle, Madison International Real Estate Liquidity Fund VIII, with $1.7 billion in equity commitments, including side cars, co-investment vehicles and general partner commitments.

The fund outpaced Madison International Real Estate Liquidity Fund VII, which closed in March 2020 with $1.2 billion in equity commitments. It was also higher than Madison International Liquidity Fund VI, which closed in July 2016 with nearly $1.4 billion in equity commitments.

Calling it an extremely challenging fundraising climate, Ronald Dickerman, Madison International Realty founder & president, said in a prepared statement the fund still received robust support from both returning and new investors. Known as Madison VIII, the fund received commitments from endowments, foundations, public and private pension funds, sovereign wealth funds, family offices, insurance companies and high net worth individuals in the U.S., Europe, Asia, the Middle East and Australia.

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Dickerman said Madison’s direct secondary investment strategy is targeted to be counter-cyclical, allowing the firm to leverage opportunities in rapidly changing economic conditions. A leading liquidity provider to real estate investors across the globe, Madison has been able to make well-timed investments and increase allocations to tech-enabled, growth-oriented real estate asset classes, Dickerman stated. The firm, which has offices in New York, Los Angeles, London, Amsterdam, Luxembourg and Frankfurt, focuses on acquiring ownership stakes in prime properties and portfolios in the U.S., U.K. and Europe.

The company did not give details about some of the investments made by Madison VIII other than to say the fund is invested in several diverse investments in the industrial, cold storage, life science, data center, multifamily and single-family rental sectors across the U.S., U.K., and Europe.

Last month, Madison entered into a strategic partnership with REI Nation, a Memphis-based SFR operator managing 7,600 homes, by committing $150 million in strategic growth capital. Dickerman said at the time the equity stake would allow both parties to pursue opportunities in the SFR market.

More Madison moves

In other recent transactions, Madison sold Highland Grove, a 312,406-square-retail center in Highland, Ind., to Bridge33 Capital in July, according to CommercialEdge data. The 29-acre shopping center has six buildings leased to a variety of tenants including Kohl’s, Burlington, Macy’s, Michaels, Petco, Ulta, Target, Best Buy and Ashley Furniture.

Earlier this year, Madison sold its 80 percent stake in a 2.3 million-square-foot industrial portfolio to joint venture partner Plymouth Industrial REIT Inc. The REIT paid $102.6 million for the stake, including the assumption of $56 million in existing debt, which dates back to late 2020.