Related closes fund that invests in One Mad. and Rector Square

Jan.January 23, 2012 02:30 PM

Related Companies has closed the distressed asset fund that purchased debt on Manhattan properties including One Madison Park and 225 Rector Place (also known as Rector Square), BusinessWeek reported.

The Related Real Estate Recovery Fund garnered $825 million of commitments, $75 million more than it targeted, to invest mostly in distressed debt with an eye on taking ownership of the properties. The fund will also invest in Chicago, Boston, Los Angeles, San Francisco and Florida, and was used to acquire the office building at 511 West 25th Street.

“Our whole idea was to do all those deals that require heavy execution where there’s less competition so pricing is better,” Blau said.

According to the Financial Times, the fund was among the largest commercial real estate investment vehicles raised in 2011, and the largest run by a property developer. Vornado Realty Trust was a close second, raising an $800 million fund. Investors embrace these funds because they only pay fees to the operator, and not to a fund manager as well as the operator. [BusinessWeek] and [FT]

Related Articles

Related's Jamar Adams and Steve Ross with 14-06 Gateway Boulevard (Credit: Getty Images and Google Maps)

Related is the latest developer to target the Rockaways

RCP CEO Richard O’Toole and Related CFO David Zussman (Credit: O’Toole via Westchester Magazine and Zussman via Related)

Related tries to calm Israeli investors after market panic

Related CEO Stephen Ross (Credit: Ross by Arturo Holmes/Getty Images; Wikipedia Commons)

Related’s Israeli bonds worry auditors as crisis worsens

Steve Ross, Eliot Spitzer and a rendering of 451 10th Avenue (Credit: Getty Images) 

Spitzer, Related land $276M in financing for Hudson Yards senior housing project

Jeff Blau (Credit: Getty Images)

Related’s CEO talks Hudson Yards and “complicated” projects

Related Chairman Stephen Ross (Credit: Getty Images, Wikipedia)

Related drops 700-foot-long “wall” from Hudson Yards plan

Shaun Osher, CORE CEO (Credit: Getty Images and iStock)

CORE becomes latest NY resi brokerage to expand into South Florida

Related Companies chairman Stephen Ross and Hudson Yards (Credit: Getty Images)

Next phase of Hudson Yards could include 700-foot-long wall