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

TRD New York /
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 is the latest developer to target the Rockaways

15 Hudson Yards (Credit: Related-Oxford, iStock)

First he sold a plot of land to Hudson Yards’ developers. Now he owns 7 luxury condos there

The Plaza Hotel in 1975 and models walking the runway during New York Fashion Week September 2019 (Credit: Getty Images)

Fashion Week struts its stuff at these iconic NYC locations

Related CEO Jeff Blau, Deutsche Bank CEO Christian Sewing, and Time Warner Center at 10 Columbus Circle (Credit: Getty Images and Wikipedia)

Deutsche Bank shrinks footprint at future Columbus Circle home amid global downsizing

Gym chain creator looks to part ways with Westchester County compound

1065-1075 Gerard Avenue in the Bronx 

Prana pays Related $36M in Bronx multifamily play

These are some of the most notable resi sales of the week

Clockwise from top: Related chairman Steven Ross, Mactaggart Family & Partners CEO Philip Mactaggart, a rendering of 456 Greenwich Street, and Caspi Development's Joshua Caspi (Credit: Getty Images, Mactaggart, and MHA Westchester)

Developers of bankrupt Tribeca hotel project think Related might be colluding with their landlord