Real estate PE firm Stonelake Capital Partners closes on fifth fund – Houston Business Journal

Dallas private equity firm Stonelake Capital Partners has closed its fifth fund, raising more than $325 million for investments in Texas real estate.

Stonelake has now passed $1 billion raised from investors since it was founded in 2007 by a pair real estate advisers Kenneth Aboussie and John Kiltz. The firm is looking to invest in multifamily, industrial and office buildings in Dallas, Austin and Houston.

In the Houston area, Stonelake’s investments include The James and The Ivy luxury apartment buildings in between Highland Village and the River Oaks District. The company also will develop Park Place River Oaks, an 11.5-acre, 835,000-square-foot mixed-use project adjacent to the apartments.

Aboussie said the firm has already found five deals for the new fund but couldn’t disclose details on the properties yet. The firm plans to put in between $5 million and $40 million per deal.

“The general view from institutional investors is the economy in the major cities in Texas will continue to outperform the economies of most other major markets,” Aboussie said in an email to the Dallas Business Journal, a sister paper of the Houston Business Journal.

The firm had been aiming to raise $300 million for the fund — first reported on by the DBJ in November. Outside investors, counting university endowments, private foundations and hospital systems, piled in $319 million. Stonelake itself put in another $6.9 million.

The fund’s closing comes as investors are searching for real estate deals in resilient local economies in case of a slowdown or further shakeups in the stock market.

Industrial properties in particular have been experiencing a boom as e-commerce retailers are in need of more warehouses and distributions centers.

The vacancy rate on industrial buildings in Texas fell below 6 percent during the first three months of the year, according to real estate giant CBRE.

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