The investment arm of Robert Nelson’s Nelson Management launched its second real estate investment fund, which will focus on buying multifamily properties in New York City.
Global One Investments’ fund has already raised $30 million from investors, Nelson told The Real Deal. Nelson would not say how much equity he plans to raise for the fund, but said the firm is targeting $450 million worth of acquisitions.
One reason the firm is looking to invest in multifamily now, according to Nelson, is the prospect of higher interest rates. Pointing to a recent rise in Treasury yields, Nelson said “all of that (…) starts to squeeze values a little bit, so I see this as an opportune time to jump back in and look for opportunities.”
Nelson formed the investment division Global One with Michael Gerstein in 1996. The firm launched its first fund in 2008, and used it to buy 1,300 apartments. Beyond the fund, Global One’s portfolio includes 275 South Street in the Financial District, Promenade Apartments at 150 West 225th Street in the Bronx and Atlantic Plaza Towers in Ocean Hill, among other buildings.
Earlier this year, Nelson and L+M Development Partners announced plans to give their 256-unit apartment tower 275 South Street a makeover.