Heitman Closes $800 Million Real Estate Debt Fund

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CHICAGO--(BUSINESS WIRE)--Feb 3, 2025--

Heitman LLC (“Heitman”), a global real estate investment management firm, today announced the close of its Heitman Real Estate Debt Partners III fund (“HDP III” or “the fund”) at $806 million in capital commitments, exceeding its $600 million fundraising goal. The fund will aim to provide creative financing solutions to high-quality sponsors executing real estate projects in traditional and alternative property sectors.

HDP III will seek to capitalize on dislocations in the capital markets and will provide loans to sophisticated real estate operators across the United States. The fund deploys an approach that targets returns that fall between core-plus and value-add strategy equity programs.

“Our latest fundraise demonstrates Heitman’s ability to navigate the current market environment and our experience in executing debt strategies that utilize innovative investment structures,” said Jon Lindell, Executive Vice President and Portfolio Manager for HDP III. “As demand for flexible and reliable financing solutions grows, we believe the real estate debt market is well-positioned with attractive opportunities.”

The close of HDP III reflects Heitman’s ability to attract capital from investors seeking income generation and portfolio diversification through real estate-backed debt. As part of the capital raise, the Fund received support from existing investors in the fund series along with interest from investors that are new to the firm.

Heitman’s debt platform manages $5.5 billion in assets under management 1, investing across structured senior debt, value-add and mezzanine debt, and opportunistic debt.

ABOUT HEITMAN:

Heitman is a global real estate investment management firm with $48 billion in assets under management as of December 31, 2024. Founded in 1966 and headquartered in Chicago, Heitman has 10 offices worldwide and is an active participant in the global real estate property and capital markets. Heitman makes real estate investments through private equity, debt, and publicly-traded real estate securities.

1 As of December 2024

View source version on businesswire.com:https://www.businesswire.com/news/home/20250203067024/en/

CONTACT: Prosek Partners on behalf of Heitman

[email protected]

KEYWORD: UNITED STATES NORTH AMERICA ILLINOIS

INDUSTRY KEYWORD: FINANCE PROFESSIONAL SERVICES COMMERCIAL BUILDING & REAL ESTATE ASSET MANAGEMENT CONSTRUCTION & PROPERTY

SOURCE: Heitman LLC

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PUB: 02/03/2025 09:30 AM/DISC: 02/03/2025 09:33 AM

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