Shorenstein upsizes latest fund to $2bn

The private real estate investment firm has increased its latest $1.3 billion fund by more than $700 million.

San Francisco-based Shorenstein Properties has closed on an upsizing of its latest fund, Shorenstein Realty Investors Nine, which initially closed in May 2007 with $1.3 billion in equity commitments including $100 million invested by the firm.

Shorenstein’s latest real estate vehicle now has $2.06 billion of capital. The firm re-opened the fund to additional commitments at the end of 2007 “in response to disruptions in the debt markets that have changed the investment environment,” according to a statement issued today.

“The dislocation of the credit markets last summer and the ongoing uncertainty created by that event makes this a good time to have committed discretionary capital,” said Douglas Shorenstein, Shorenstein chairman and chief executive. “We think the market in front of us will present opportunities to make attractive debt and equity investments for those investors with the right combination of patience, expertise and capital.”

Shorenstein Realty Investors Nine will focus on value-added office and mixed-use properties in major markets throughout the US. The fund’s investments to date include seven mezzanine loans totaling $373 million backed by Class A office properties in New York, Washington DC and California. The fund also holds a 100 percent equity interest in a 350,000-square-foot office building in the Galleria submarket of Houston, Texas.

In addition to single asset acquisitions, Shorenstein’s funds have invested in portfolios of properties, preferred equity, mezzanine loans, ground-up developments, and structured joint ventures.