Crow Holdings Capital Closes Crow Holdings Realty Fund VI at $1B, Makes 15 Investments

By Gail Kalinoski, Contributing Editor

Bob McClain, CHCP

Crow Holdings Capital Partners, L.L.C., a Dallas-based investment firm, which recently closed a new fund totaling $1.067 billion, has started putting the money to work across the United States. The fund has made 15 investments in industrial, medical office and retail holdings along with 2,260 units of multi-family housing.

Executives with the firm said Crow Holdings Realty Partners Fund VI was initially targeted at $750 million but grew past $1 billion, the firm’s largest fund to date.

“We have been very pleased by the response from new and existing investors alike. We believe $1 billion is an appropriate size for the opportunities we are seeing in the market today,” Bob McClain, head of real estate at CHCP, and Anne Raymond, CHCP president, told Commercial Property Executive.

They said Fund VI will be consistent with previous funds and seek income-generating assets in major markets that also benefit from capital appreciation. Other asset classes they expect to invest in are convenience and gas stores, hotels and land.

Anne Raymond, CHCP

Fund VI has made investments in seven multi-family properties. They are: Paseo at Bee Cave, Austin, Texas, 293 units; Monument Park, Fairfax, Va., 460 units; Broadstone Citrus Village, Tampa, Fla., 296 units; Broadstone Parkway, Dallas¸ 333 units; Pavilions on Central, Phoenix, 254 units; West Inman Lofts, Atlanta, 204 units; and Freestone, Washington, D.C. Metro, 420 units.

New investments were made in three industrial properties: Tuscany – 244,019 square feet, Austin, Texas; 10 West – 1.17 million square feet, Phoenix; and Highwoods – 1.7 million square feet, Atlanta.

Forest Park Medical Offices in Fort Worth and San Antonio, Texas, with a total of 463,567 square feet were among the first investments in Fund VI.

Three retail assets were also included in the first round of Fund VI investments: The Village at Town Park, Atlanta, 64,703 square feet, and two in the Washington, D.D. Metro area, Reston at Midtown with 18,473 square feet and the Fairfax Portfolio with 48,669 square feet.

Fund V raised $952 million in equity in 2008 and placed it between 2008 and 2012 in 52 investments of approximately $17 million each. The first fund raised $281 million in 1998 and spent it on 46 investments of about $ million each between 1998 and 2001.

“Our success over the years derives from our real estate professionals’ fundamental approach to – and deep understanding of – real estate value creation,” McClain said in a news release. “The successful closing of Fund VI affirms this approach, and we are delighted by the enthusiastic reception from existing and new partners alike.”

Raymond said they were grateful to their partners for their continued support.

“Our many years of experience investing through real estate cycles and strong alignment with our partners guide our cautious approach to the markets – which is valued by our instutional investors,” she said in the release.

Founded in Dallas in 1998, CHCP and CHCP-affiliated entities have managed six private equity real estate funds. Equity capital from the funds totals approximately $4.1 billion. Of the number, about $675 million has been committed by Crow Family Holdings, which was established to manage the assets of the Trammell Crow family.