Primestor Development, a minority-owned and minority-led urban impact real estate developer and investor, held its first closing for The Urban Vision Fund I, anchored by an equity commitment through Belay Investment Group of up to $100 million and a $25 million equity commitment from LGT Capital Partners.
The Urban Vision Fund I will seek to develop and acquire transit-oriented, mixed-use real estate investment opportunities in urban, minority communities with a geographic focus on California. With these projects, Primestor will look to continue advancing its core thesis of developing and investing in real estate in urban communities characterized by density, high-growth and limited access to essential goods, services and housing. Through its local-hire strategy, Primestor has historically created more than 14,000 local construction and permanent jobs that are estimated to generate $1.3 billion of annual local economic activity in historically overlooked communities.
“The fulfillment of our mission to deliver transformative real estate projects to underinvested communities, hinges on our ability to develop the right partnerships at every stage of our work,” said Arturo Sneider, co-founder and CEO of Primestor. “We see Belay as an ideal, mission-aligned partner that supports our vision and will work with us hand-in-hand for the success of our projects and the advancement of our company.”
Belay is a Los Angeles-based, women-owned and led real estate investment management firm with over $900 million of assets under management, primarily on behalf of a large California-based pension plan. LGT Capital Partners is an alternative investment specialist with over $85 billion in assets under management and more than 600 institutional clients in 43 countries.
“We are humbled and excited to complete our first closing for The Urban Vision Fund I with capital commitments from institutional and family office investors,” said Leandro Tyberg, co-founder, president and chief operating officer of Primestor. “LGT Capital Partners is an excellent partner for Primestor given its profound appreciation for and understanding of our unique investment strategy and the growth potential in our urban markets.”
Primestor has invested more than $1 billion to date in urban, mixed-use real estate and The Urban Vision Fund I serves as a platform for the continued expansion of its unique community-oriented business model centered on local economic empowerment of underinvested, minority neighborhoods via local job generation, local sales tax generation and infrastructure improvements. The company’s long-standing community engagement is further underscored by its partnership with local governments, community organizations and commercial tenants, delivering more than 150 events per year at its properties, including book fairs, food drives, art exhibits, blood drives and music and dance performances highlighting local talent.
“[Primestor’s] thoughtful and disciplined approach to real estate development and investing provides significant social and economic impact to historically overlooked Latino and Black communities while also focusing on delivering returns to institutional investors. Primestor’s mission and their deep-rooted engagement and collaboration in the communities they serve resonates deeply with our team,” said Eliza Bailey, Belay’s CEO and chief investment officer.
The investment establishes LGT Capital Partners’ partnership with Primestor and opens up other investment opportunities consistent with its long-term focus on Environmental, Social and Governance considerations.
“We are delighted to complete our investment in The Urban Vision Fund and work with Primestor on direct investing opportunities in their robust project pipeline of mixed-used real estate projects in urban markets, said Thomas Brown, partner at LGT Capital Partners. “Primestor’s business model aligns with our company-wide focus on ESG as a core element of our culture and investment beliefs.”
