The Real Deal New York

GreenOak raises $1.6B for latest fund

The RE investment firm's third fundraising effort is its largest yet
May 14, 2018 01:00PM

Sonny Kalsi and 420 East 54th Street

GreenOak Real Estate raised $1.55 billion for its third American property fund, the company’s largest raise to date.

The Midtown-based investment firm is targeting returns of 15 percent as it capitalizes on a renovation and repositioning strategy, Bloomberg reported. The new fund will target core markets like New York but also branch out to other cities such as Seattle, Washington and Miami.

“Our goal is to buy unloved or undermanaged real estate, then fix, stabilize and sell it, so we need to invest in markets where there’s liquidity,” said GreenOak founder Sonny Kalsi.

In New York, the firm is targeting mid-market multifamily investments, according to Bloomberg.

GreenOak’s second real estate fund totaled $756 million. The company has sold about a quarter of that fund’s assets at a 13 percent return, while the company’s first fund delivered has so far delivered a whopping 32 percent return.

GreenOak recently sold a residential-and-retail building a 5-7 Mercer Street in Soho for $21 million and partnered with Highgate to buy the Gansevoort Park Avenue hotel, which they renamed the Royalton Park Avenue. [Bloomberg]Will Parker