TA Realty LLC has completed the final close of Realty Associates Fund XII, a value-add investment vehicle, with a total capital raise of approximately $1.2 billion. The closing comes nearly two years after the fund’s launch.
Fund XII, like its predecessor vehicles, targets industrial, office, multifamily and grocery-anchored shopping centers in leading markets across the U.S. The fund attracted equity commitments from a diverse collection of global institutional investors consisting of pension plans, sovereign wealth funds, endowments and foundations, insurance companies and family offices. Among the group of participants, which included both new and repeat investors, were Teachers Retirement System of the State of Kentucky, Massachusetts’ Plymouth County Retirement Association and Minnesota State Board of Investment, which contributed $100 million.
TA Realty has completed a bevy of transactions on behalf of Fund XII, investing an average of roughly $25 to $30 million per acquisition. Purchases include Indigo Springs Apartments, a 240-unit multifamily community near Phoenix in Mesa, Ariz., and the 81,000-square-foot industrial warehouse at 80 Essex Ave., in Avenel, N.Y., just outside Staten Island.
Participants in Fund XII were undoubtedly enticed by TA Realty’s strong track record. To date, the real estate investment management firm has raised in excess of $10.5 billion of equity for its series of flagship value-add funds.
The value-add allure
The investment community, both domestically and globally, remains strongly attracted to value-add funds. Within the last six months, Sares Regis Multifamily Value-Add Fund III closed with more than $328 million in total equity commitments, providing the vehicle with a leveraged total of $1 billion for the purchase of apartment communities in the Western U.S. And as 2020 kicked off, Hines announced the first closing of Hines European Value Fund 2 with a capital raise of €637 million, or approximately $708.9 million, predominantly for value-add office assets in leading institutional markets across the continent.