$1B Investment Vehicle to Target Florida M-F Market

Leading multi-family developer The Related Group has joined forces with real estate private equity firm Lubert-Adler to form a $1 billion investment vehicle focusing on the multi-family market in Florida, Related’s home state. The partners will acquire property and mortgages from third-party developers, owners and lenders.  A bevy of real estate assets are up for consideration by the Related/Lubert-Adler investment instrument; everything from existing condominium properties to developable land will be targeted. Working in partnership with Lubert-Adler provides Related with the financial freedom to orchestrate deals on a grander scale.  The decision to focus on Florida stems from the firms’ faith in the state’s multi-family market, which has recently been experiencing a slowdown. According to real estate investment services firm Marcus & Millichap’s 2008 National Apartment Report, there was a significant downturn in 2007 in Florida’s major markets; markets that had been riding the condo conversion wave. This year is expected to bring substantial competition from the shadow market. Headquartered in Miami, Related is the top developer of luxury condominiums in the country. Over the last three decades, the company has built and managed 70,000 residential units, predominantly in Florida, but in other states across the U.S. Its development portfolio is presently valued at over $10 billion. Philadelphia-based Lubert-Adler is a real estate private equity concern that specializes in redevelopments through joint ventures. The company has invested more than $15 billion in all property types over the last 10 years.