- GCM Grosvenor and Standard Real Estate Investments have launched a $600M fund targeting workforce housing and industrial properties in key US markets.
- $500M will focus on workforce housing, targeting residents earning no more than 120% of the area median income.
- The remaining $100M will target smaller, multitenant industrial properties in markets with low vacancy rates, building on a $150M investment strategy from 2023.
- Workforce housing investments will prioritize garden-style apartments and undervalued urban properties, while industrial investments will focus on 200 KSF to 500 KSF assets.
A new $600M investment fund from GCM Grosvenor and Standard Real Estate Investments aims to capitalize on two high-demand sectors in the US real estate market: industrial properties and workforce housing.
The fund builds on the success of a $150M industrial strategy launched in 2023 and signals growing investor interest in stable, income-generating assets amid economic uncertainty, per Bisnow.
Workforce Housing Strategy
The bulk of the fund—around $500M—will be for workforce housing properties targeting residents earning up to 120% of the area median income. The partnership will focus on acquiring garden-style complexes in areas with quality school systems and undervalued urban assets primed for recovery.
Properties targeted for this strategy will range between $50M and $150M, with bids currently placed in markets such as DC, Philadelphia, New Jersey, Connecticut, Chicago, Seattle, and Central Valley, CA.
Standard CEO Robert Jue noted the fund’s focus on capturing increased investor demand for private real estate during this market cycle.
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Industrial Investment
The remaining $100M will focus on industrial properties, continuing a previously successful strategy. The fund targets smaller, multitenant assets ranging from 200 KSF to 500 KSF in high-demand, low-vacancy markets.
Standard recently completed its first successful exit from the $150M industrial investment round launched in 2023, selling a 217 KSF logistics facility in Woodridge, IL. Current projects in the pipeline include properties in growth markets like Arizona and Texas.
Looking Ahead
The launch of this expanded fund reflects a broader trend of institutional capital seeking stable returns in essential asset classes like workforce housing and logistics.
With GCM Grosvenor managing $80B in assets and Standard Real Estate having deployed $8B, the partnership is well-positioned to leverage its experience in both sectors.
As demand for affordable housing and logistics space continues to rise, the fund’s dual-sector focus could offer both strong returns for investors and positive community impact.
