Heitman Raises $806M for Firm’s Third CRE Debt Fund

Sometimes fundraising exceeds its own expectations. 

Heitman announced Monday that it closed $806 million in capital commitments for its third debt fund, Heitman Real Estate Debt Partners III, or HDP III, and that the firm exceeded its fundraising goal by more than $200 million. 

HDP III will target investing in both the big five asset classes, as well as alternative property sectors, and aims to follow an investment strategy prioritizing core-plus and value-add returns, according to the firm. 

Jon Lindell, executive vice president and portfolio manager for the fund, said in a statement that commercial real estate demand across debt markets is being driven by “flexible and reliable financing solutions.”

“Our latest fundraise demonstrates Heitman’s ability to navigate the current market environment and our experience in executing debt strategies that utilize innovative investment structures,” he added. 

Heitman’s debt platform carries $5.5 billion assets under management, while the firm as a total holds an AUM of $48 billion globally. 

Some recent projects the firm has financed include acquiring a 300,000-square-foot industrial property in Norfolk, Va.; three three residential apartment buildings — totaling 257 units — in Osaka, Japan; and a 6,000-square-foot mixed-use residential space in Oslo, Norway. 

Brian Pascus can be reached at bpascus@commercialobserver.com