During his firm’s <a href=" http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NDI5NzY4fENoaWxkSUQ9NDQ3MTU2fFR5cGU9MQ==&t=1">presentation</a> at NAREIT’s REIT Week in New York last week, Kenneth Bernstein, president and CEO of White Plains, N.Y.-based shopping center REIT Acadia Realty Trust, offered a candid assessment of the market for
One of Acadia’s avenues of growth in its time as a REIT has been a series of opportunity funds, through which it has pursued value-add acquisitions. As of December 31, 2010, it had launched three opportunity funds, the $90 million Acadia Strategic Opportunity Fund LP (launched in September 2001), the $300 million Acadia Strategic Opportunity Fund II LLC (launched in June 2004) and the $502.5 million Acadia Strategic Opportunity Fund III LLC (launched in May 2007).
The first two funds were fully invested and generated healthy returns for Acadia and other investors. (Acadia typically owns a minority stake in the funds, collects management fees and earns a promote fee, depending on the funds’ profitability.) The third fund is still active. To date it has made nine opportunisticand has approximately $200 million of capital available for new investments with an investment period that concludes in May 2012.
Read Full Story Here