Heitman Raises Record $2.6B Fund, Betting Big on Niche Real Estate

CHICAGO, IL – January 20, 2026 – In a powerful display of investor confidence amidst a turbulent real estate market, global investment management firm Heitman LLC has announced the final close of its largest-ever fund. The firm successfully raised $2 billion for its Heitman Value Partners Fund VI (HVP VI), blowing past its $1.75 billion target to hit the fund’s hard cap.

Bolstered by an additional $620 million in co-investment commitments, the fund now commands a formidable $2.62 billion in equity. Combined with leverage, this provides Heitman with an estimated $6.55 billion in capital to deploy over the next few years. The achievement is particularly noteworthy given the challenging fundraising environment that characterized much of 2025, signaling strong institutional belief in Heitman's strategy and cycle-tested experience.

A Contrarian Bet on Market Timing

Heitman's leadership is framing the current economic climate not as a headwind, but as a strategic opening. “We view this phase of the cycle as an attractive entry point,” said Maury Tognarelli, Heitman CEO. “Strategies underpinned by secular trends that generate returns from a combination of income and value creation opportunities continue to remain compelling.”

This perspective comes after a period of significant “market dislocation” where rising interest rates caused commercial real estate values to reprice, in some cases by 20-25% over the last three years. This repricing, combined with expectations for moderating interest rates in 2026, has created a landscape ripe with opportunity for value-add investors prepared to act.

Industry analysts note that while equity fundraising became more difficult in 2025, the groundwork has been laid for a market recovery. Transaction activity is projected to climb by as much as 16% this year as more capital comes off the sidelines. Heitman’s massive fundraise positions it at the forefront of this anticipated resurgence.

“In a period of continued market dislocation, investors are increasingly looking for partners with deep experience and cycle-tested strategies,” noted Mike Trench, Executive Vice President and Co-Portfolio Manager of Heitman’s value series. “HVP VI is designed to capitalize on the resilience of non-correlated sectors and the emerging opportunities created by today’s capital markets environment.”

The New Guard of Real Estate Assets

At the core of HVP VI's strategy is a deliberate focus on demographically driven, less cyclical alternative sectors, which are expected to deliver a target net return of 12%-14%. Rather than relying solely on traditional property types, the fund will heavily target assets like medical office buildings, student and senior housing, and self-storage, complemented by investments in the apartment and industrial sectors.

This strategic pivot reflects a broader market shift towards assets insulated from economic volatility. The performance of these niche sectors is tied more to long-term demographic trends than to the ups and downs of the business cycle.

Medical Office Buildings (MOBs): With an aging Baby Boomer population driving demand for outpatient services, MOBs have demonstrated remarkable stability. The sector boasted high occupancy rates of over 92% in 2025, and with new construction starts dropping, supply is tightening, which is expected to support steady rent growth.

Senior Housing: The demographic tailwind for senior housing is undeniable. The oldest Baby Boomers turn 80 in 2026, creating a surge in demand that is projected to push occupancy rates above 90% for the first time in nearly two decades. With new development remaining disciplined, the supply-demand dynamic is highly favorable for investors.

Self-Storage: Often driven by life events like moving or downsizing, the self-storage industry has historically proven its resilience through economic downturns. After a period of normalization, the sector is showing signs of stabilization and is supported by long-term trends like household formation and urbanization.

Apartments and Industrial: The fund will also maintain exposure to traditional growth sectors. The apartment market remains robust as high mortgage costs keep would-be homebuyers in the rental market. The industrial sector, while navigating a temporary supply overhang, continues to benefit from the long-term growth of e-commerce and supply chain optimization.

A Global Vote of Confidence

The success of the HVP VI fundraise is a testament to Heitman's standing in the global investment community. Attracting commitments from more than 30 investors across seven countries, the fund secured its most diverse investor base to date. This global backing, from institutions likely including pension funds, sovereign wealth funds, and endowments, serves as a powerful endorsement of Heitman's strategy and its more than three decades of value-add investing experience.

Since 2004, the firm’s HVP series has deployed $12.5 billion in gross cost across 103 investments, building a track record that clearly resonates with capital partners seeking reliable management in uncertain times. The scale of HVP VI’s raise places it among the most significant real estate funds in the current market, comparable to recent multi-billion-dollar funds raised by major players like Bain Capital and Kayne Anderson, who are also targeting alternative assets.

The deployment of this $6.55 billion war chest will be closely watched by the industry. Heitman's ability to identify and acquire underperforming assets at a discount and execute its value-add strategy will not only determine the fund's success but could also set a new benchmark for navigating the post-dislocation real estate landscape.