$150m Arsenal fund.

Arsenal Real Estate Funds has closed its inaugural fund with capital commitments of over $150 million and a gross investment capability of over $600 million.

Founded in 2004 by veterans from the real estate industry, Arsenal invests in select multi-family, office, retail and in-fill land investments nationwide.

Arsenal's strategy is to invest through its network of operating partners in development, redevelopment, repositioning and land reuse/entitlement opportunities.

The fund has invested in urban in-fill land reuse investments, affordable rental housing developments, waterfront residential development and entry-level condominium conversions in markets with barriers to entry. Arsenal has acquired or controls identified investments for nearly 70% of AREF I's capital and plans to have the balance of the Fund's capital invested within the next 12 months.

"Our investment strategy is one that my partners and I have successfully executed throughout our careers," said Gary Picone, partner and co-founder of Arsenal.

"AREF I's flexible strategy positions us to perform well as we progress through the cycle. We initiated fundraising for our unique strategy at a time when institutional investors were clamoring for higher return opportunities in a market that had become intensely competitive. Our fund allows investors the opportunity to invest in our significant, off-market deal flow generated through our network of real estate operators."

Along with Picone, Arsenal's founders include Picone, John Maurer and Joe Margolis, long-time veterans of Prudential Real Estate Investors, and J. Brian O'Neill, founder and chairman of King of Prussia, PA-based O'Neill Properties Group. Investors consist of several leading institutional investors, including corporate and public pension plans, foundations and university endowments.