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LAKE FOREST, IL-Green Courte Partners LLC, based here, has closed its equity-raising efforts for a second investment fund, Green Courte Real Estate Partners II LLC. The firm raised $262.5 million and plans to invest in approximately $800 million of real estate, says James Goldman, managing director and chief investment officer of Green Courte.

The fund will target niche real estate such as manufactured housing communities, “Main Street” infill retail and mixed-use properties and some parking assets in high barrier locations, Goldman says. “We try to do things that we think are really value added where you have to have specialized market objectives,” he says.

The firm tends to focus on assets with a gross investment of between $20 million and $40 million, but will do both deals smaller and larger than those amounts, Goldman tells GlobeSt.com. “We are tending to be more effective with smaller capital assets,” he says. The first acquisition was a manufactured-housing property in Florida that it acquired for “a little over $40 million,” he says. Goldman would not give specifics on the property except to say that it is a “trophy, five-star, senior property in Florida.” Green Court also has “several hundred million dollars of investments that we are working on,” he said, with properties under contract, negotiations and letter of intent negotiations. The typical hold period for the assets is “seven years after we have completed all of our investments,” Goldman says. Green Courte expects to have fully committed the fund in a three-year time period, he says. The firm tries to have an average yield in the “upper teens” on a gross basis as “We are trying to deliver a mid-teens return to our investors,” he says.

Green Courte started a second fund because the first fund was nearly fully completed and “we still see a lot of opportunity in the market primarily pursuing the same strategies that we had in the first fund,” Goldman says. The firm’s first fund had raised $120.5 million in equity and has committed more than $500 million to niche real estate investments. There are still a few projects in development for the first fund. Many of the investors for the first fund have invested in the second fund and have invested larger amounts then they invested in the first fund, he says. Earlier this year, the firm invested $47 million in three retail projects for its first fund, as previously reported by GlobeSt.com. The firm acquired 12 retail buildings with a total of 50,499 sf in the historic downtown district of Long Grove, IL, invested in a 50,076-sf transit-oriented development in Lake Forest, IL and acquired a 90% joint venture interest in the Alpenglow mixed-use project in Steamboat Springs, CO.

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