Black Creek Group Closes Record-Breaking Year
The Denver-based firm posts a year-over-year increase of 150% in its capital raise in 2019.
“Executing against a strategic plan that was put into place a few years ago—one focused on local teams backed by national resources and institutional processes—we experienced great success in 2019, especially in raising and deploying capital,” Raj Dhanda, CEO at Black Creek Group, tells GlobeSt.com. “Having a strong team in place, we continued our long-standing track record of creating value for our investors. In particular, it was through our deep relationships that we were able to execute record capital deployment, leading to the acquisition of 13.4 million square feet of industrial and multifamily properties—three times more than what we did in 2018.”
In 2019, fundraising targeted institutional investors. Of the $2.3 billion in capital raised, $1.6 billion came from institutional investors with $700 million coming from private investors. In its development strategy, the firm focused on multifamily and industrial assets and leveraged local teams. “We started the year with the goal of expanding our industrial and multifamily holdings, and we were able to accomplish it through our local market teams and long-standing relationships,” Dhanda says. “We have found that by being close to our real estate, we are able to find deals that others may not and have a deeper understanding of each market’s nuances making us a better investor, owner and operator.”
In total, the firm acquired 13.4 million square feet of industrial and multifamily properties; purchased nearly 500 acres of land for the development 6.6 million square feet of industrial space; developed 3.1 million square feet of industrial space; and leased 11.2 million square feet of space across its commercial portfolio, which brought its total occupancy to 90.2%. “Our strategy varies based on the sector we are investing in, as we know that each area of commercial real estate has different drivers for success,” says Dhanda. “As an example in the industrial sector, we have seen ecommerce continue to be a driving factor and thus have aimed to develop and acquire in last mile areas where ecommerce tenants strive to be.”
These stats are largely significant increases over the firm’s 2018 numbers. For instance, it acquired three times the amount of square footage compared to 2018 and nearly 150 more acres of land for development. The activity brings the firm’s portfolio to 77.3 million square feet in 33 markets.