Another fund is being raised to snatch up distressed assets.
Greenberg Gibbons has announced that it is in the final stages of raising a $100 million private equity fund to make strategic shopping center acquisitions in East Coast, Southeast and selected Midwest markets. The fund, which will have the capacity to acquire $300 million of assets, will reposition retail spaces, make property upgrades, develop additional uses and improve operations.
The Greenberg Gibbons Real Estate Income Fund officially closed last month, with the majority of equity committed. It is finalizing remaining equity commitments through the second quarter of 2021. Fund investors include high net worth individuals, family offices and institutional investors, in addition to Greenburg Gibbons.
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The fund will seek strategic investments with a focus on essential retail shopping centers. That includes value-add grocery-anchored community, neighborhood and power centers that may need to be revitalized.
The fund was actually in the works before the COVID-19 pandemic, but plans were accelerated when the virus hit, according to Greenberg Gibbons CEO Brian Gibbons.
"Due to operational and investment challenges affecting retail shopping centers caused by COVID-19 and other e-commerce trends, we saw a rare opportunity to leverage our team's expertise by acquiring necessity-based shopping centers well below replacement cost and at significant discounts to historical valuations," Gibbons said in a prepared statement.
Greenberg Gibbons, an investor, developer and manager of retail and mixed-use properties, has Hunt Valley Towne Centre, Foundry Row, Towson Row and Waugh Chapel Towne Centre in its $2 billion portfolio.
Once the Greenberg Gibbons Real Estate Income Fund is fully invested, Greenberg Gibbons expects to establish additional acquisition funds in the future.
Along with retail, hotels have also been hit hard during the pandemic and are drawing distressed funds into that space as well.
For example, Electra America teamed up with AKA to form the Electra America Hospitality Group to make distressed assets in urban gateway markets. The fund is in the process of raising $500 million in capital from investors for the acquisition of independent hotels in major gateway markets.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
