$100 MILLION GROSVENOR RESIDENTIAL INVESTMENT PARTNERS FUND IS FULLY INVESTED

The $100 million Grosvenor Residential Investment Partners I, LP (GRIP), sponsored by Grosvenor Fund  Management (GFM) of Philadelphia, PA and KeyCorp Fund Management Group, an affiliate of KeyCorp (NYSE: KEY), is fully invested.

Since 2008, the fund has invested in 20 residential land and/or development projects in 13 states. Individual investments have ranged from about $3 million to just under $10 million. Over the next four years, these projects will deliver over 1,100 units of single-family and multifamily housing. As the new housing units sell, GRIP investors will receive their proceeds and the fund will be liquidated.

GRIP was organized as a private partnership to invest in “for-sale” residential projects and associated debt across the United States. Investments were made in the form of senior participating debt and mezzanine debt. The fund has been able to take advantage of the stress in the housing market by financing the purchase of re-priced assets in specific markets that met the fund criteria.

“We expect GRIP to deliver strong returns to investors as these new homes deliver over the next few years,” said John Gaghan, Director of Residential Investments. "The fund’s strategy has been to target infill locations within major metropolitan areas, investing alongside experienced sponsorship.”

During the summer of 2011, GRIP made its final five investments:

• A subordinate mezzanine loan for site development and construction of an upscale 68-unit town home development in Saddle River, New Jersey. 

• A subordinate mezzanine loan for site development and construction of 113 town homes and condominiums in the “SoCo” District of Austin, TX.

• A senior loan for the build-out of a partially completed 199-unit town home community in Bucks County, PA.

• A subordinated mezzanine loan to complete the build-out of 18 partially completed single-family homes in an established golf community in Oxnard, CA.

• A senior loan to complete the build-out of a 19-unit single-family home community located adjacent to the Texas Medical Center in Houston, TX.