Montgomery Street Partners, a real estate investment firm, has raised $500 million in a private follow-on common equity offering for The Ground Lease REIT.

GLR’s follow-on offering increases the REIT’s investment capacity to over $1.5 billion.

Murray McCabe, a managing partner of Montgomery Street Partners, said, “The strong demand we’ve seen for GLR’s follow-on equity offering validates our strategy and confirms that ground leases have evolved to become an acceptable and mainstream financing tool. With our renewed support and funding, we look forward to continuing to broaden interest in this emerging real estate asset class and expanding our market leadership.”