ElmTree Funds Closes Largest Commingled Fund to Date

ElmTree Funds announced the closing of its largest commingled fund to date, ElmTree U.S. Net Lease Fund IV.

The fundraising effort for Fund IV, led by Annie Hsieh, head of capital formation at ElmTree, did not include a private placement agent for the marketing process, and ElmTree nevertheless exceeded Fund IV’s original hard cap of $800 million with $888 million of investor commitments.

Fund IV has approximately $2.5 billion in immediate investment capacity, of which approximately $800 million has been committed and deployed. 

During the past year, ElmTree has deployed in excess of $4 billion and acquired and put under contract 47 properties, totaling more than 16.5 million square feet. 

In February, the company reported that it has deployed more than $1.5 billion in capital over the last year in various industrial net lease build-to-suit assets leased to investment-grade tenants located across the United States.

When considering which markets it might invest into, James Koman, CEO and founder of ElmTree, noted that, “The COVID-19 health pandemic has accelerated the ongoing trend of population migration from gateway cities to growing primary and secondary markets, including very attractive areas such as Phoenix and Salt Lake City.”

The fund’s investor base is composed of public and private pension plans, insurance companies, endowments, and foundations. Fund IV targets investments in industrial and logistics assets across the United States.

ElmTree’s investments across the United States have targeted strategically located markets with what ElmTree believes have strong market leasing fundamentals, positive demographic trends, and superior accessibility to major transportation hubs.

“We continue to execute on our investment strategy supporting growing e-commerce sales and the need to build out industrial facilities for supply chains, which we believe will result in positive real estate fundamentals,” Koman said in prepared remarks.