Former Blackstone executive’s Town Lane raises $1.9bn for second real estate fund

Town Lane Management has raised $1.9 billion for its second real estate fund, exceeding its fundraising target by more than 25%. The vehicle secured commitments from U.S. institutional investors, including endowments, foundations, family offices, and pension funds. The fundraising launched in May, following an earlier $1.25 billion first vehicle.

Town Lane plans to deploy between $50 million and $300 million per investment. The firm is targeting sectors including senior housing, retail, and industrial properties. In addition, the firm has expanded into digital infrastructure through a joint venture with PowerHouse Data Centers to develop a powered data centre facility located in North Carolina.

The firm was founded by Tyler Henritze alongside his sister Parker Morse, a former executive at Sycamore Partners. Henritze previously spent almost two decades at Blackstone, where he was most recently head of strategic investments for real estate in the Americas and was involved in the acquisition of QTS Realty Trust.

As it expands its real estate investment platform, Town Lane has recruited investment professionals from TPG, Starwood Capital, Coatue Management, and Blackstone.

The fundraise comes amid continued dislocation in commercial real estate markets. According to JPMorgan Chase, property valuations remain approximately 25% below their previous peak as higher borrowing costs and weaker office demand continue to weigh on the sector.