Greystar Real Estate Partners has held the final close for its third real estate credit fund, raising $600 million for Greystar Credit Partners III.
The Charleston, South Carolina-based manager, which invests, develops and manages properties in sectors that include rental housing, logistics and life sciences, has set a broad mandate for its latest fund.
Greystar Credit Partners III will focus on the acquisition of securitized subordinated debt, private label securitization, junior notes and mezzanine debt. All of its investments will be focused on properties in the for-rent residential space.
The fund follows Greystar Credit Partners II, a similarly sized strategy that followed the same investment mandate. The manager launched its credit business in 2018 as part of a plan to scale its overall real estate platform, said Brett Lashley, managing director and leader of credit.
Since then, the firm has raised more than $2 billion of unleveraged capital for commercial real estate debt strategies. “While we’ll always be patient stewards of the capital entrusted to us, we look forward to deploying this capital in an environment with potentially improving risk/return metrics,” Lashley added.