Distressed Properties Drive Brookfield to Record 16B Fundraise

Brookfield raised $16B to target distressed properties as investor interest in discounted commercial real estate surges.

May 8, 2025

Han Lung

Brookfield Asset Management raised $5.9B in Q1 2025 for its new opportunistic real-estate fund, bringing the total to $16B.
The fund is targeting distressed and cash-out properties, focusing on apartment buildings and warehouses at prices 20%-40% below their peaks.
Brookfield’s aggressive acquisitions reflect broader trends, with real-estate private equity fundraising rebounding sharply in early 2025.

Key Takeaways

Taking Advantage of the Downturn

According to WSJ, Brookfield Asset Management is seizing opportunities in distressed properties as the real-estate market struggles.

In Q1 2025, the firm raised $5.9B for its newest fund, marking its largest-ever quarterly haul. This brings the fund’s total size to $16B, with a target of $18B before the final close.

Property values have dropped sharply, and Brookfield is moving quickly. It is buying distressed assets and healthy properties from owners eager to sell. Lowell Baron, Brookfield’s chief investment officer, said the firm is purchasing assets at 20% to 40% below their peak values and often below replacement costs.

Early Moves: Apartments, Warehouses, and Logistics

Brookfield has already deployed about a quarter of the fund. It is investing heavily in distressed properties such as apartment complexes and warehouses. Key deals include the acquisition of troubled San Francisco apartment loans, which led to foreclosure, and the purchase of Tritax EuroBox, a European logistics company valued at over $1.4B.

Higher tariffs under the Trump administration have increased construction costs. This environment favors existing commercial properties, giving Brookfield an advantage. Baron explained that new supply is shrinking because of these higher costs.

A Broader Fundraising Recovery

Brookfield’s fundraising success reflects a larger trend. Private-equity real-estate funds raised $57.1B globally in Q1 2025, a sharp rise from $32.5B in the same period last year, according to PERE. Major players like Blackstone also reported strong fundraising, signaling renewed investor interest.

Investors are showing growing confidence that distressed properties offer rare buying opportunities as competition thins out. “People are nervous and uncertain,” Baron said. “That keeps competition away,” allowing Brookfield to act aggressively in a less crowded market.