The Real Deal New York

Lendlease launches $2B multifamily fund

Portfolio to include properties in NYC, Chicago and LA
By Kathryn Brenzel | August 22, 2018 12:01AM

A rendering of Southbank in Chicago (top), Slip 65 at Clippership Wharf in Boston (bottom), and Jason Alderman of Lendlease (Credit: Lendlease and CL Properties)

Australia-based construction giant Lendlease has co-launched a multifamily investment fund to create a $2 billion portfolio in the U.S.

The company and its partner, Australian superannuation fund First State Super, each contributed $500 million in equity to the investment vehicle, the companies announced Wednesday. They plan to create a $2 billion portfolio that includes properties in New York City, Boston, Chicago, Los Angeles and San Francisco.

The portfolio already includes Southbank, a $1.2 billion mixed-use development in Chicago; and Clippership Wharf, a 478-unit residential project in Boston. Lendlease was initially working on a larger project in Chicago — dubbed Riverline — as part of a joint venture with CMK Companies. The partnership dissolved earlier this year, and the firms split more than 15 acres into two parcels, one wholly owned CMK and one by Lendlease (now called Southbank).

Lendlease will serve as the new investment platform’s development, construction and investment manager.

The firm launched a development arm for its operations in the Americas in 2015, saying at the time that it would largely focus on New York City, Boston and Chicago. In New York, Lendlease is co-developing a condo project at 281 Fifth Avenue with the Victor Group.

Until it launched its development platform, Lendlease focused exclusively on construction management in New York. The company is one of the city’s top general contractors and is often tapped to work on luxury high-rise condo buildings.