New Fund Plans To Invest $600M In U.S. Industrial, Workforce Housing
A partnership between Chicago-based GCM Grosvenor and Los Angeles-based Standard Real Estate Investments is looking to invest $600M in industrial and workforce housing.
Of the total investment, $500M will go into workforce housing, according to a press release from Standard first reported by Green Street's Real Estate Alert. The other $100M will go toward industrial, adding onto the $150M investment strategy the partnership launched in April 2023.
“We’re proud to announce this important expansion of our programs with GCM Grosvenor,” Standard CEO Robert Jue said in the release. “We think private real estate bought at this stage of the cycle could provide a more attractive risk-return profile than other asset classes, and we are well positioned to capture the increased investor demand we anticipate seeing in the space.”
For the workforce housing investment, the partnership is targeting properties for residents earning no more than 120% of the area median income, garden-style complexes in areas with desirable schools and undervalued projects in urban areas well positioned for recovery, Real Estate Alert reported.
In its release, Standard said its workforce housing strategy targets properties between $50M and $150M, and the company is bidding on properties in Washington, D.C., Philadelphia, New Jersey, Connecticut, Chicago, Seattle and California’s Central Valley.
For its latest investment into the industrial market, the fund is looking to invest equity in smaller-scale, multitenant properties in high-demand markets with low vacancy rates, Real Estate Alert reported. It’s also continuing to target properties between 200K SF and 500K SF, as it did for the previous $150M it invested.
Its initial $150M in industrial development was fully deployed in 18 months, Real Estate Alert reported. It was targeting three to four transactions with that fund.
Standard said in its release that it sold the first project from the fund, a 217K SF logistics facility on a 17-acre parcel in Illinois' Village of Woodridge, last month and has a pipeline in Arizona and Texas.
Alternative investor GCM Grosvenor has $80B of assets under management. Standard has invested in $8B in assets over its lifetime.
