Oak Street Real Estate Capital closed Oak Street Real Estate Capital Fund IV at $1.25 billion, exceeding its initial $1 billion hard cap and $750 million fundraising target, said CEO Marc Zahr.
Fundraising was completed in approximately six months. Predecessor fund Oak Street Real Estate Capital Fund III closed at $515 million in February 2016.
The income-producing real estate strategy will "acquire single-tenant buildings that are net leased to investment-grade rated tenants under long-term leases," Mr. Zahr said.
The firm anticipates making its first investment for Oak Street Real Estate Capital Fund IV in the fourth quarter.
Investors in the fund include the $27.6 billion Pennsylvania State Employees' Retirement System, Harrisburg; $48.7 billion Illinois Teachers Retirement System, Springfield; $38.6 billion Illinois Municipal Retirement Fund, Oak Brook; and the $9.8 billion Chicago Public School Teachers' Pension & Retirement Fund.