Heitman Closes $2B Investment Fund
More than 30 entities in seven countries contributed to the vehicle.
Heitman has closed Heitman Value Partners Fund VI, a real estate investment vehicle that received commitments totaling $2 billion. The fund exceeded its $1.8 billion target size, making it the firm’s largest closed-end capital raising venture to date.
Heitman is planning a diverse real estate investment portfolio for HVP VI, including a heavy component of income-producing residential properties. The target assets will include such niche plays as student and senior housing, as well as more standard market rate apartments in metros with strong demographic trends.
Other target sectors for HVP VI will include self storage and medical office assets, as well as industrial properties. Combined with leverage, the fund will wield an estimated $6.6 billion in capital to deploy over the next few years.
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Other third parties have also committed $620 million of co-investment capital to the fund. It secured commitments from a wide array of investors, including more than 30 entities in seven countries.
HVP VI is aiming for an overall return of 12 to 14 percent, net of fees and costs, according to Heitman.
A wide spectrum of real estate investment
Since 2004, Heitman has deployed five value-add funds in North America, representing $4.5 billion in equity commitments in 103 investments, for a gross cost of $12.5 billion.
In early 2025, the firm closed Heitman Real Estate Debt Partners III, which landed $806 million in capital commitments. Surpassing its $600 million fundraising goal, HDP III provides loans to U.S. real estate operators with holdings that fall between core-plus and value-add.
Heitman and Crescent Communities made a second foray into the build-to-rent sector in December with the formation of a joint venture aiming to invest as much as $340 million for the development of six single-family U.S. rental communities. The two firms first teamed up in May 2024, eventually pouring $345 million into the sector.
In October, the partners opened the first rental homes at HARMON Cedar Run, a build-to-rent property totaling 151 units in suburban Atlanta. Heitman and Crescent previously developed HARMON-branded projects in Arizona, Florida, Georgia, North Carolina, Tennessee and Texas.
