CenterSquare Announces Strong Results for Fourth Value-Added Real Estate Fund
- Editor
- Jan 24
- 2 min read
What's Happening: CenterSquare Investment Management has announced the results for its CenterSquare Value-Added Fund IV, L.P. The 2019 vintage fund's performance was at the high end of its 13-15% target range, matching the performance of its predecessor fund. The success is attributed to the firm's data-driven approach, disciplined investment process, and active asset management.
The Key Moves:
Fund IV made over 70% of investments in 2019, with a significant overweight to multifamily and industrial sectors.
Approximately 85% of transactions were sourced off-market, demonstrating CenterSquare's proactive approach and industry relationships.
The fund maintained a conservative 45% portfolio leverage level, focusing on value creation through business plan execution rather than financial engineering.
By The Numbers :
CenterSquare committed 94% of the capital raised for Fund IV.
The fund's performance was at the high end of the 13-15% target range.
CenterSquare manages over $13 billion in assets as of December 2024.
Key Quotes:
"A successful, full realization of the Fund within five years of most of the portfolio being constructed demonstrates our ability to identify assets with significant near-term value creation," said Jeffrey Reder, Managing Director.
"We are proud of the results we delivered to our clients, particularly through the turbulent periods created by both the COVID-19 pandemic and the steepest, fastest interest rate rise in decades," said CEO and CIO Todd Briddell.
"Through volatility, we remained focused on the critical elements of our investment framework and ultimately created significant value for investors," added Briddell.
The Bottom Line: CenterSquare's Value-Added Fund IV has delivered strong results, showcasing the firm's ability to navigate challenging market conditions and create value for investors. The fund's success underscores CenterSquare's expertise in identifying opportunities, executing business plans, and managing risk in the real estate private equity sector.
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