The $100 million Grosvenor Residential Investment Partners I, LP (GRIP), sponsored by Grosvenor Fund Management (GFM) of Philadelphia, PA and KeyCorp Fund Management Group, an affiliate of KeyCorp (NYSE: KEY), is fully invested.
Since 2008, the fund has invested in 20 residential land and/or development projects in 13 states. Individual investments have ranged from about $3 million to just under $10 million. Over the next four years, these projects will deliver over 1,100 units of single-family and multifamily housing. As the new housing units sell, GRIP investors will receive their proceeds and the fund will be liquidated.
GRIP was organized as a private partnership to invest in “for-sale” residential projects and associated debt across the United States. Investments were made in the form of senior participating debt and mezzanine debt. The fund has been able to take advantage of the stress in the housing market by financing the purchase of re-priced assets in specific markets that met the fund criteria.
“We expect GRIP to deliver strong returns to investors as these new homes deliver over the next few years,” said John Gaghan, Director of Residential Investments. “The fund’s strategy has been to target infill locations within major metropolitan areas, investing alongside experienced sponsorship.”
During the summer of 2011, GRIP made its final five investments:
• A subordinate mezzanine loan for site development and construction of an upscale 68-unit town home development in Saddle River, New Jersey.
• A subordinate mezzanine loan for site development and construction of 113 town homes and condominiums in the “SoCo” District of Austin, TX.
• A senior loan for the build-out of a partially completed 199-unit town home community in Bucks County, PA.
• A subordinated mezzanine loan to complete the build-out of 18 partially completed single-family homes in an established golf community in Oxnard, CA.
• A senior loan to complete the build-out of a 19-unit single-family home community located adjacent to the Texas Medical Center in Houston, TX.
About Grosvenor Fund Management, Inc.
Grosvenor launched its first fund in 1976 and formally established Grosvenor Fund Management in 2005. GFM offers a range of sector and regional specialist property investment funds that aim to deliver attractive, risk-adjusted returns. Operating from offices in China, France, Italy, Japan, Luxembourg, Spain, the UK, and the US, GFM employs professionals with local knowledge and skills to execute investment decisions. Aligning GFM interests with those of its partners and building long-term investor relationships is of paramount importance. As at December 31, 2010, GFM’s funds under management were approximately $6.0 billion with 70 investor partners in 24 funds and separate accounts. For further details, please see Grosvenor’s Annual Report and Accounts, available at www.grosvenor.com