Lawrence R. Gottesdiener, Northland's chairman and CEO, notes that the company's investments have generated "superior risk-adjusted returns" for more than 10 years. He adds that Northland has received positive responses from its investors toward the new fund. "The focus is to capitalize on the disconnect between rising real estate prices and declining market fundamentals, as well as the disparity in pricing between Wall Street and Main Street," he says.

Gottesdiener points out that the fund will give the company buying power in top and mid-tier real estate markets across the country specifically with regard to multifamily and office properties and among publicly traded real estate companies. He emphasizes that "we see many exciting opportunities in our target markets and will review them carefully against our targeted acquisition criteria."

The Northland chief executive says that the company's investment strategy is "diversified and contrarian," which is "particularly well-suited for today's increasingly competitive marketplace." The company is currently in the process of redeveloping the Civic Center in Hartford into a $165-million mixed-use development of housing, retail, restaurants and public space. Last year, the firm purchased the Pavilions, a 932-unit garden-apartment community in Manchester, CT, for $81.5 million.

The fund will be led by Northland's current senior management team. Northland Investment Corp. currently boasts a $1-billion diversified portfolio comprised of more than 13 million sf of real estate, with major concentrations in New England and along the southern tier of the US.