Green Cities fund brings new life to Gerding Edlen
By Wendy Culverwell
Molly Bordonaro said Gerding Edlen will launch efforts to raise a second fund after a successful showing with its Green Cities I LP Fund.
Fresh from raising $183 million for its first-ever real estate fund, Portland’s most-watched green developer will launch a second fund this year.
Gerding Edlen Fund Management LLC, the investment arm of Gerding Edlen Development Co., closed its Gerding Edlen Green Cities 1 LP fund this month.
Molly Bordonaro, senior vice president, said the unnamed second fund will likely launch this quarter and will invest in the same urban infill apartment projects as the first.
“We see a significant play,” she said.
Gerding Edlen launched Green Cities 1 in late 2009 with the stated goal of raising $500 million. The economy derailed that, but observers said the fund is still a success.
Bruce Korter, managing director of Washington Capital Management, called $183 million a remarkable tally for a first-time fund.
“They did that in a period of about three years, starting from scratch. They did a very good job,” said Bruce Korter, managing director of Washington Capital Management.
Fueled by pension funds, insurance companies and endowments, Gerding Edlen invested the proceeds of Green Cities 1 in seven mostly unbuilt apartment development projects to answer soaring demand for rentals in city neighborhoods like ones in Seattle, Los Angeles and Boston.
The fund’s success is breathing new life into Gerding Edlen. The firm faced dark days when the recession dried up demand for its glitzy condominiums, causing it to falter as lenders took control of several projects and equity investors were wiped out.
But even as the firm cut its development staff in half, it was expanding its multifamily management business, increasing its staff to about 50.
firstname.lastname@example.org | 503.219.3415
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.