New Fund Closes at $1.9 Billion as Office Hangover Sidelines Rivals
Town Lane Management closed its second real estate fund at $1.9 billion, exceeding its target by more than 25%. Founder Tyler Henritze, who spent nearly two decades at Blackstone before launching the firm with his sister Parker Morse in 2023, began marketing the vehicle in May. Commitments came from endowments, foundations, family offices and pension funds. Individual investments will range from $50 million to $300 million.
Henritze points to the firm’s lack of legacy holdings as a competitive advantage while older funds work through portfolios weighed down by office exposure and elevated interest rates. Commercial real estate values remain roughly 25% below their prior peak, according to JPMorgan Chase. Town Lane’s first fund, which raised $1.25 billion, backed senior housing, retail and small-business industrial properties. The firm also entered a joint venture with PowerHouse Data Centers to acquire land in North Carolina for a data center shell with power infrastructure.
Henritze left Blackstone in 2023, where he most recently served as head of strategic investments for real estate in the Americas and helped execute the acquisition of QTS Realty Trust. Town Lane has hired from TPG, Starwood Capital Group, Coatue Management and Blackstone. An advisory group includes former Blackstone executives Michael Nash and William Stein, and Guy Metcalfe, who led Morgan Stanley’s real estate investment banking business for more than two decades.
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