Black Creek CEO Raj Dhanda Talks About Why It Still Makes Sense to Buy Industrial Assets

In spite of low cap rates, Black Creek still sees opportunity in industrial and multifamily acquisitions.

Real estate investment management firm Black Creek Group recently reported that its fundraising had surged to $702 million through July 31, 2019, including $290 million in equity commitments from institutions. The company raises capital across different solutions, including its two non-traded REITs. Black Creek has been busy putting that capital to work. During the first seven months of the year, the firm acquired 4.7 million sq. ft. of assets and has 3 million sq. ft. of industrial properties under construction. Black Creek’s holdings currently span about 67 million sq. ft. of industrial, multifamily, office and retail assets. NREI recently talked to Black Creek CEO Raj Dhanda about the firm’s recent capital raising and the market climate for new acquisition and development opportunities.

NREI: Your firm raised $702 million through July 31st as compared to $817 million for the full year in 2018. What’s driving that momentum?
Raj Dhanda: I think there are a couple of factors contributing to our success. One is more specific to Black Creek. Black Creek’s story of being focused on a real estate operating model that combines acquisitions and development to assemble portfolios one property at a time is in demand and attractive to a lot of different investors. More broadly, I think commercial real estate continues to be an asset class that is benefiting from capital flows and increased investor allocations. Of course, low interest rates and a fundamentally strong economy don’t hurt either.

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