StepStone Real Estate is investing $87.5m (β¬82.9m) in HRI Properties, a US hotel and residential developer and owner.
The investment manager, founded by Jeff Giller, Josh Cleveland and Brendan MacDonald, for its third fund.
βThe HRI investment provides us with diversified exposure to high quality assets in major urban markets,β said Brendan MacDonald, a partner at StepStone Real Estate.
New Orleans-based HRI specialises in urban in-fill projects and the reuse of historic buildings.
The firm owns and operates a portfolio with over 3,000 hotel rooms, 1,500 apartment units and 165,000 sqft of commercial space.
Stepstoneβs investment will fund the expansion of HRIβs portfolio into urban markets.
With committed co-investment capital, StepStone it will have over $1.1bn to invest in special situations in the US and Europe.
