Carlyle Group raises $4.2B for new real estate fund

Private equity giant will invest in rentals, commercial, retail and warehouses nationwide

New York /
Sep.September 16, 2015 09:32 AM

One of the nation’s biggest players continues to make enormous bets on U.S. real estate.

The Carlyle Group drew in $4.2 billion from investors in its seventh real estate fund, reaching the high end of its target range.

The Washington D.C.-based private equity firm plans to expand an already-massive position in residential and commercial real estate in major markets nationwide.

“I don’t see deal volume slowing down,” Rob Stuckey, the firm’s head of U.S. real estate told Bloomberg. “We see values holding up for core properties and we think that with GDP growth, we still have runway in this cycle.”

Carlyle hopes to make returns of 20 percent before fees on the fund. Its last real estate fund, CRP VI, had a net internal rate of return of 24 percent as of June 30, according to the company’s quarterly report.

The firm owns shares in 18 properties and development sites in New York, according to Real Capital Analytics, including 14 Wall Street in the Financial District. Earlier this week, the firm paid $48 million a three-floor medical condo at the Corinthian in Murray Hill. [Bloomberg]Ariel Stulberg


Related Articles

arrow_forward_ios
Carlyle's David Rubenstein (Carlyle)
Real estate venture backed by Carlyle’s David Rubenstein raises $240M
Real estate venture backed by Carlyle’s David Rubenstein raises $240M
From left: Meadow Partners' Jeff Kaplan and Davean Holdings' Sean Lefkovits (Meadow Partners, Davean Holdings, Getty)
Meadow, Davean pick up 12 apartment properties for $77M
Meadow, Davean pick up 12 apartment properties for $77M
Blackstone’s Jonathan Gray and 8 Spruce Street (Photo-illustration by Paul Dilakian/The Real Deal)
Private equity firms are betting big on New York apartments
Private equity firms are betting big on New York apartments
RXR Realty’s Scott Rechler and 75 Rockefeller Plaza (Illustration by Kevin Cifuentes for The Real Deal with Getty Images, dconvertini/CC BY-SA 2.0/via Wikimedia Commons)
RXR lands $260 million refi for 75 Rockefeller Plaza
RXR lands $260 million refi for 75 Rockefeller Plaza
Carlyle Group’s David Rubenstein and 193 Chauncey Street in Brooklyn and 530 Lafayette Avenue in Brooklyn (Google Maps, Carlyle, Getty)
Lenders favor resi projects in big month for outer-borough loans
Lenders favor resi projects in big month for outer-borough loans
Photo illustration of Carlyle's David Rubenstein and Jason Hart (Illustration by Kevin Rebong for The Real Deal)
Watch: Uncovering Carlyle’s Brooklyn buying spree
Watch: Uncovering Carlyle’s Brooklyn buying spree
Photo illustration of Carlyle's David Rubenstein and Jason Hart (Illustration by Kevin Rebong for The Real Deal)
Private equity giant Carlyle’s latest big play: Small Brooklyn buildings
Private equity giant Carlyle’s latest big play: Small Brooklyn buildings
Criterion Group's Shibber Khan and 31-08 Northern Boulevard in Long Island City (Criterion Group
Criterion sells LIC self-storage for $80M
Criterion sells LIC self-storage for $80M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...