Drake Real Estate Partners Announces Final Close of DREP Fund IV Exceeding Target at $410+ Million
Drake Real Estate Partners has closed its fourth flagship fund, adding key strategic U.S. investors to its diverse capital base.
(New York – January 4, 2022) – Drake Real Estate Partners, a real estate investment and asset manager targeting under the radar value-add investment opportunities, announced the closing of its fourth flagship fund, Drake Real Estate Partners Fund IV (“DREP Fund IV” or the “Fund”) with more than $410 million in commitments, exceeding its target raise of $350 million.
The raise adds significant new strategic U.S. institutional relationships to Drake’s investor mix, in addition to continuing the Firm’s decade-long partnerships with prominent family offices and other institutional investors from across the globe.
Founded in 2012, Drake implements a value investment philosophy by investing in income-producing real estate assets, generally at a significant discount to replacement cost, and driving value by focusing on repositioning, leasing and improving operations. The Firm focuses predominantly on smaller investment sizes – typically between $5-25 million of equity – in non-major U.S. markets where it has historically achieved outsized risk-adjusted returns.
“Our team specializes in accessing overlooked opportunities – whether off-market or mis-marketed investments – adding value through asset-level improvements and executing successful asset sales to generate 12-14%+ net returns to our investors,” commented David Cotterman, co-founder and Chief Investment Officer.
Co-founder and President Nicolas Ibanez added, “We have built a successful track record over the past decade thanks to our focus on long-term partnerships, from our operating partners to our investors. This alignment of interest is evidenced in the Principals’ sizable commitment across the funds, as well as that of my family office, which accesses its real estate exposure through the Drake funds. Drake is a uniquely-aligned investor.”
To date, the Fund, which launched in May 2021, has made nine investments across multifamily, industrial and single-tenant office – which constitute the Firm’s core product types over the past decade. Examples include class-B multifamily opportunities in North Carolina and Georgia; a portfolio roll-up of small, singe-tenant industrial assets located in infill locations across the East Coast; and a single-tenant net lease office building near Charlotte serving as the recently consolidated headquarters of a tire manufacturer with a “credit enhancement story,” as Partner Jonathan Garonce explains.
The Firm has completed $1.8 billion in transactions to date across a variety of geographies and property types, including multifamily, industrial, office (including medical office and creative office), self-storage, senior housing, retail, and hospitality.
About Drake Real Estate Partners
Founded in 2012, Drake Real Estate Partners is a real estate investment and asset management firm based in New York City. Drake seeks to invest in high quality, income-producing real estate assets at a significant discount to replacement cost, and drives value by focusing on repositioning, leasing, and improving operations. Drake uses the flexible, long-term nature of its capital to its advantage by seeking out opportunities that have been overlooked by other investors. Drake has completed $1.8 billion in transactions to date and has invested across a variety of geographies and property types, including multifamily, industrial, office (including medical office and creative office), self-storage, senior housing, retail, and hospitality.
Drake is a proud member of 1% For The Planet, donating 1% of the firm’s revenues to not-for-profit environmental initiatives in the markets in which it invests.
For further information, visit www.drakerep.com.
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