RYE, NY — Acadia Realty Trust (NYSE:AKR) announced that it has raised $520 million in commitments for Acadia Strategic Opportunity Fund V LLC, above expectations. This is the fifth in a series of institutional funds dedicated to making opportunistic and value-add investments in retail real estate. With leverage, Fund V has approximately $1.5 billion of buying power.
The Fund was oversubscribed and exceeded its $500 million target. Of the $520 million of total commitments, $104.5 million was committed by Acadia, and $415.5 million was committed by a diverse group of investors including university endowments, foundations, pension funds, investment management firms and family offices. Approximately 98% of the Fund’s third-party commitments came from existing investors in one or more of Acadia’s four prior funds. Fund V held its final close within one month of launch.
“We greatly appreciate the tremendous support of our new and many longstanding partners, who have demonstrated strong confidence in our team and strategy,” stated Kenneth F. Bernstein, President and CEO of Acadia. “We are excited to have this new dry powder available to invest in compelling risk-reward opportunities, over the next few years, for the benefit of all of our stakeholders.”
Fund V will continue to implement Acadia’s location-driven investment strategy, targeting street retail, next-generation street retail, distressed-retailer real estate and other opportunistic retail real estate investments. Acadia is a vertically-integrated company whose investment experience includes recapitalization, value-add re-leasing and asset repositioning and redevelopment.
Acadia Realty owns shopping plazas throughout the NY area including: Amboy Shopping Center in Staten Island; Bedford Green Shopping Center in Bedford Hills; Cortlandt Town Center in Mohegan Lake; and Gotham Plaza in Harlem.