Crow Holdings Closes $3.1B Value-Add Fund

Crow Holdings, of Dallas, has reached the final close of Crow Holdings Realty Partners X L.P. at $3.1 billion of commitments.

Crow Holdings reported that more than 70 percent of prior investors re-upped their investment in the value-add fund series, along with substantial participation from new investors, including global banks, sovereign wealth funds, insurance companies, pension plans, family offices and high-net-worth individuals.

In addition to these investments in the primary fund, the fund manager has secured co-invest agreements totaling nearly $600 million in equity capital, resulting in the potential for about $3.7 billion in total investable equity for the strategy.

The fund exceeded its fundraising target and reportedly will continue to invest across the U.S. in value-add real estate assets, primarily in the industrial, multifamily and specialty sectors including manufactured housing, convenience retail, self storage and student housing.

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Fund X is managed by Crow Holdings’ investment management company Crow Holdings Capital and is both the firm’s largest-ever fundraise to date and a nearly 35 percent increase from the $2.3 billion of commitments raised for the predecessor Fund IX.

More than 25 percent of Fund X’s capital to date has been committed across 14 investments. Crow Holdings declined to provide details on these deployments.

According to prepared remarks by Crow Holdings Capital CEO Bob McClain, the fund will continue to invest in real estate assets that the company believes benefit most from long-term secular trends that support their continued income growth, primarily in industrial and multifamily assets in high-growth markets.

Steady activity

The close of Fund X brings the total amount of capital raised across all 10 vintages of the firm’s U.S. Diversified Value-Add Real Estate Funds and other CHC-managed vehicles to more than $15.6 billion since 1998.

Just so far this year, Crow Holdings has been an active trader of industrial properties. In January, a real estate fund advised by Crow Holdings Capital and Creation Equity sold Northmark Commerce Center, a newly completed 234,475-square-foot Class A industrial facility in Haltom City, Texas, in the Dallas–Ft. Worth Metroplex.

In early February, Crow Holdings Development completed a 207,000-square-foot Class A industrial facility in Elmwood Park, N.J. The project was a redevelopment of a 90-year-old former Marcal Paper warehouse that had been destroyed by a fire in 2019.