Madison Realty looking for $1bn on Fund IV

The real estate lender’s target exceeds its previous fundraise by more than $300m. 

Madison Realty Capital has locked down $255.71 million for its latest real estate debt fund, a vehicle that comes a little over a year after its predecessor held a final close.

The New York-based lender is more than 20 percent to its $1 billion goal, according to filings submitted on Friday to the US Securities and Exchange Commission. The firm, which could not be reached for comment, has so far tapped 36 investors for commitments.

Fund III wrapped up fundraising, locking down $695 million, in May 2016. The fund surpassed its $600 million goal but fell short of its $750 million hard-cap, according to minutes from an October 2015 meeting of the Public Employees Retirement Association of New Mexico.

Limited partners that committed to the fund include the New York State Teachers’ Retirement System ($40 million), The Oregon Public Employees’ Retirement System ($150 million) and PERA ($50 million), according to PDI data.

The fund invested in senior loans with a one- to three-year life priced at 8-12 percent. The properties the firm invested in mainly were in the New Jersey-New York-Connecticut tri-state area and in other East Coast metropolitan areas.

Founded in 2004 by Brian Shatz and Joshua Zegen, Madison invests both debt and equity in multifamily, retail, office and industrial properties, according to its website.