A limited partnership between three Canadian companies has raised $ 300 million to invest in residential and mixed-use projects in the Washington, DC, California and Vancouver markets. The True North III partnership includes Grosvenor Americas, Nicola Crosby and Kingswood Capital, who have previously worked together on two similar partnerships.
The $ 300 million was raised through Grosvenor’s Structured Finance Program and will be used to provide equity financing to projects in Washington, DC; the San Francisco Bay Area; Los Angeles; Seattle and Vancouver. Canadian investors are specifically targeting US markets that have experienced imbalances between supply and demand caused by the pandemic.
Grosvenor’s SDF program seeks to provide capital to developers in these markets who are working on projects ranging in size from 50 to 450 units. True North III has already found its first project to fund and will provide $ 15 million to Roadside Development and its 10-story condominium project in the Shaw submarket in Washington, DC. The Roadside Development community will offer 79 units for sale, 24 of which are below market prices. Grosvenor has also previously funded an 89-unit condominium in Washington, DC through its SDF program.
James Delmotte, executive vice president and director of co-investments at Grosvenor, also said Multi-housing news that there are several other agreements in the True North III pipeline located in Seattle; Washington DC; and Vancouver which are expected to close in the third quarter of this year.
Alex Henderson, senior vice president of co-investment at Grosvenor, said in prepared remarks that the housing supply and demand imbalance in these markets could worsen, but that True North III would support efforts to to supply new products to constrained markets.
PARTNERSHIP FOR A THIRD TIME
True North III is the third partnership between Grosvenor, Nicola Crosby and Kingswood Capital. Delmotte said MHN that the trio first teamed up for True North I which raised $ 300 million. The first partnership was followed by True North II, which raised $ 400 million and also brought in the Manitoba Civil Service Superannuation Board, also said Delmotte. MHN. In total, the three limited partnerships have seen a total of nearly $ 1 billion raised in commitments since 2015.
To support the growth of Grosvenor’s SDF division, the company has hired Steve Guberer as senior vice president of capital markets, who will lead capital raising activities in the United States and Canada. Grosvenor has also hired Jennifer Eskildsen as Vice President of Co-Investment where she will oversee the SDF division’s activity in the Bay Area, Los Angeles and Orange County.