Real estate investment firm Cortland has raised $1.5 billion (€1.3 billion) for its sixth U.S. value-add multifamily fund.

The Company announced that capital raised for Cortland Enhanced Value Fund (CEVF) VI and its affiliates exceeded the $1 billion target at final closing.

The fund received increasing support from existing investors and significant commitments from new investors. About 25 percent of the commitments came from foreign investors, with institutional investors accounting for 80 percent of the total, Cortland said.

As previously reported, the New York State Common Retirement Fund (NYSCRF) supported the Cortland Apartment Fund with a commitment of $300 million.

Cortland’s previous fund in the series, which closed for good in May 2021, raised a total of $650 million. NYSCRF made a $150 million commitment to the fifth fund in 2020.

Jason Kern, president of investment management at Cortland, said Fund VI aims to build on Cortland’s track record while focusing on high-growth U.S. markets in the Sunbelt and Mountain West.

Kern added, “Cortland was patient and disciplined and did not deploy abundant value-added capital in a difficult acquisition environment that coincided with the unprecedented rise in U.S. interest rates from mid-2022 to late 2023.

“However, Cortland is now benefiting from reduced asset prices and higher returns in an improving operating and capital markets environment, and Fund VI is now almost 30% committed. Having exceeded our original target by 50%, it is clear that the opportunity to invest in this sector with Cortland at this time has resonated strongly with investors.”

Steven DeFrancis, Founder and CEO of Cortland, said, “We believe the successful raising of Fund VI underscores the increasing demand for multifamily properties among institutional investors and the confidence in Cortland’s industry expertise and financial management over our nearly 20-year history.

“We are grateful for the trust our investment partners have placed in us and look forward to the opportunity to continue to deliver positive results for them.”

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