NEW YORK CITY—Fund manager AllianceBernstein has surpassed its $1-billion target for US Real Estate Partners II LP. ABREP II closed at $1.2 billion after less than 12 months in the market, coming in at more than 75% larger than its predecessor, which closed in April 2012 at $680 million. It's the second large opportunistic fund to close in less than a week, following Fortress Investment Group's $1-billion close on Fortress Real Estate Opportunities Fund II.

Although European pension funds were among the newcomers to the client base for ABREP II, the fund's focus is squarely on domestic special situations investing. Its strategy will be consistent with that of ABREP I, which invested in asset classes including multifamily, office, hospitality and land across a spectrum of investment profiles ranging from cash-flowing assets to major repositioning and development. To date, ABREP II has committed approximately $170 million through five investments.

“The fact that we were able to raise more than $1 billion in such a short period of time we believe is a testament to the confidence the marketplace has in the team we have assembled at AB, our investment discipline and our track record,” says Jay Nydick, co-CIO of AB's real estate group. While all of the institutional investors from the US and Asia who participated in ABREP I also returned for the new fund, AB diversified the client base for ABREP II.