CaseyFreemanis associate editor of RealEstate New York and part of a three-person team nowcovering the Philadelphia market

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PLYMOUTH MEETING, PA-Urdang Capital Management raised a total of$463 million in equity in its Urdang Value-Added Fund II. Thecompany will use the fund to purchase office, retail, industrialand multifamily real estate properties throughout the US.

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"Over the remainder of the fund's investment period, whichcontinues until late 2010, we expect to invest up to 15% of thefund's capital in opportunities arising from the recent distress inthe for-sale housing market, including unsold condominium projectsand entitled land," David Blum, a portfolio manager at Urdang,tells GlobeSt.com. "The balance of the fund's capital will beinvested the four main property sectors--office, retail, apartment,and industrial." Urdang continues that "we expect to assemble aportfolio that is generally balanced among office, retail, andapartments, with a smaller allocation to industrialproperties."

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Urdang is looking for properties across the US with price rangesfrom $20 million to $75 million, says Richard Ferst, president andCOO of Urdang, in a prepared statement. As of now, the company haspurchased eight properties across the country in Massachusetts,California, Texas, North Carolina, Virginia and New Jersey. Theproperties are worth a total of $400 million.

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"Our mandate is to assemble a diversified portfolio ofvalue-added properties. The east and west coasts have consistentlygenerated the highest performance in institutional grade realestate and have therefore been our long-term strategic emphases,"Blum says.

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The company raised the capital for the fund from long-timeseparate account clients, investors, endowments, foundations, highnet worth individuals and various types of pension funds. "Most ofour capital raising had been completed prior to the onset of thesubprime mortgage debacle. Our investors view real estate as astrategic asset class that is a key component of their portfolios,"Blum says.

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