Heitman announced the final close of Heitman Value Partners Fund VI, its largest closed-end fundraise to date, according to a Jan. 20 press release. The vehicle received commitments totaling $2 billion, exceeding its $1.75 billion target and reaching its hard cap.
Investors committed an additional $620 million of co-investment capital to the fund. Combined with estimated leverage, that should provide Heitman with $6.55 billion in capital to deploy to assemble the fund’s portfolio over the next few years. The Chicago-based fund was secured with commitments from its most diverse investor base to date, including more than 30 investors from across seven countries.
The fund, which seeks to deliver an overall return of 12%-14% net of fees and costs, will focus on traditional growth sectors, such as apartments and industrial, and demographically driven, less cyclical alternative sectors, including medical office, student housing, senior housing and self-storage.
“We don’t have specific target weights, but living strategies, including traditional multifamily and student housing, have played a key role in HVP’s portfolio construction,” Mike Trench, executive vice president and co-portfolio manager of Heitman’s value series, told Multifamily Dive in emailed comments. “We don’t expect Fund VI to be materially different in that regard as we continue to appreciate the growth potential and capital demand of those living sectors.”
Trench said Heitman believes in the near-term growth prospects for apartments, given that most markets have moved past peak deliveries. “The backdrop, at the highest level, of the U.S. still being under-housed alongside the value reset the market has experienced due to higher interest rates that last few years makes for a compelling entry point as well,” he said.
While Heitman is always looking for “access points in favored sectors like apartments and student accommodations resulting from distress,” those opportunities have been few and far between, according to Trench.
“Banks, LifeCo’s and debt funds are generally taking the same positive stance on the living sectors as we are on the equity side,” Trench said. “Lenders have been willing to work with strong sponsors on good real estate that just needs some re-working of the capital stack or a slightly extended timeline.”
Heitman, a global real estate investment management firm with $48 billion in assets under management as of Sept. 30, 2025, has deployed five value-add funds in North America, representing $12.5 billion in gross cost and $4.5 billion in equity commitments across 103 investments since 2004, according to the press release.
The firm has historically favored acquisition-renovation strategies across the living spectrum to create a value-add return with a meaningful cash flow component. However, higher interest rates have limited cash flow, making Heitman more selective at the moment.
“I do think it’s an interesting time, depending on specific metro and submarket conditions, to be thinking about multifamily development,” Trench said. “Being an early mover in a new development cycle with rebounding operating fundamental tailwinds at our backs may be a nice complement to that aforementioned renovation strategy.”
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