New Orleans-based real estate development behemoth HRI Properties has secured an equity investment of over $87 million from StepStone Real Estate.

StepStone Real Estate, a global investment manager with New York offices, closed a $700 million fund for StepStone Real Estate Partners III, and allocated $87.5 million of that fund for HRI Properties.

HRI specializes in urban in-fill projects and the adaptive reuse of historic buildings. Current projects under development include: a Hyatt Unbound in Nashville; a Homewood Suites in New Orleans; and an Aloft hotel in Philadelphia.

HRI has closed more equity funding over the last few years as it fuels its continued growth, including $150 million from Almanac Realty Advisors in 2014 and an additional $50 million from Almanac in 2016.

“The HRI investment provides us with diversified exposure to high quality assets in major urban markets,” said Brendan MacDonald of StepStone Real Estate in a news release.  “HRI’s management team, portfolio and track record are best in class, and we’re excited to participate in their ongoing growth.”

“SREP III has a diverse, global investor base consisting of pension funds, foundations, insurance companies, funds of funds, family offices and high net worth individuals from the U.S., Europe, Asia, Middle East and Latin America,” said Jeffrey Giller, partner and head of real estate at StepStone.

Robert W. Baird & Co. served as financial advisor to HRI in the transaction.

The company apparently brought in $220 million in revenue in 2015.

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