The fund is called Strategic Partners III and is expected to reach a total capitalization of more than $1.1 billion (equity and debt combined), according to Vance Maddocks, president of Strategic Partners LP and executive managing director of CB Richard Ellis Investors LLC.

Maddocks tells GlobeSt.com that the funds investors include 22 US and offshore institutional and high net worth individuals and that it will target multifamily, office, industrial and retail properties. While the fund will look at assets in the 50 largest US markets, it will be especially interested in opportunities in California, New York and Texas, he says.

About 40% of the fund is development oriented, Maddocks tells GlobeSt.com, explaining that besides acquiring existing assets, the fund expects to invest in ground-up development. He points out that the two existing funds called Strategic Partners I and Strategic Partners II--already own about $500 million worth of such developments that are either completed or under construction, including a number of multifamily projects.

The funds deals will range from $10 million to $150 million, Maddocks tells GlobeSt.com, with the typical deal at about $60 million. "We're looking for things that we can have a significant impact on, increasing the income by 25% over a two- to five-year time period," he says. Assets don't necessarily need to fit a strict occupancy level model, he says, explaining that the existing funds have acquired everything from buildings that were 100% vacant to buildings that were 99% leased.

What were interested in is really more a question of what the income stream or lack of income stream is, Maddocks says.

The fund typically will buy at 50% to 60% leverage, but on any given transaction the leverage picture could be much different from that typical percentage. Maddocks says the majority of the first two funds transactions have been off-market, with CBRE Investors aiming to move quickly, exercising full discretion over the funds and operating in a very entrepreneurial manner. Its hold period is typically two to five years.

The Strategic Partners I fund, with $324 million in equity, closed in April of 2000 and is now 50% liquidated. Strategic Partners II closed with $300 million of equity at end of 2002, and has not liquidated any properties yet.

CB Richard Ellis Investors LLC manages more than $14 billion in assets and sponsors investment programs in the US, Europe and Asia for institutional investors worldwide. It is an independently managed affiliate of CB Richard Ellis.