WHITE PLAINS, NY-Officials with Acadia Realty Trust report the formation of its second discretionary acquisition fund. The Acadia Strategic Opportunity Fund II LLC, has $300 million of committed discretionary capital that Acadia officials say can be leveraged to acquire up to $900 million of real estate.

Company officials say all of the current investors in Acadia’s existing acquisition fund, along with two additional undisclosed institutional investors, will invest a total of $240 million of equity in Fund II. Acadia will invest $60 million in the new fund. Acadia will earn a pro rata return on its invested equity in Fund II as well as fees for asset management, property management, leasing and construction services.

Acadia Strategic Opportunity Fund I totals $90 million in equity investment. To date, $70 million has been invested or committed to redevelopment of currently owned assets, Acadia officials say.

“Fund II is of a size and structure that enables us to continue to invest opportunistically while still maintaining our investment discipline,” says Acadia president and CEO Kenneth F. Bernstein. “Most importantly, with non-dilutive discretionary equity commitments, Fund II allows us to accretively fuel our future growth independently of the increasingly volatile public markets.”

Acadia Realty vice president Jon Grisham says Fund II will consider single property purchases or portfolio acquisitions. In May, Acadia announced its Fund I acquired interest in three shopping centers in a deal valued at $8.4 million. The fund purchased an interest in the 165,000-sf Haygood Shopping Center in Virginia Beach, Va., the Sterling Heights Shopping Center, a 141,000-sf property in Sterling Heights, MI and the 35,000-sf Tarrytown Centre, in Tarrytown, NY.

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