# Klaff Realty

Klaff Realty is an Endowment / Foundation based in Chicago, United States.

## Overview

- **Organization type:** Endowment / Foundation
- **Headquarters:** Chicago, United States
- **Region:** North America
- **Address:** Chicago, IL, United States
- **Founded:** 2005
- **Assets under management:** Approximately $170 million (Altss estimate)
- **Website:** klaffrealty.com
- **LinkedIn:** https://www.linkedin.com/company/klaff-realty-lp

## Regulatory record

- **CRD number:** 265787
- **SEC file number:** 801-106657
- **Registration status:** APPROVED
- **Latest Form ADV filing:** 2026-03-31T05:00:00.000Z
- **Reports private funds:** Yes
- **Private funds reported:** 0
- **IAPD record:** https://adviserinfo.sec.gov/firm/summary/265787

## About

The Klaff Family Foundation was established in Chicago in 2005 as the philanthropic vehicle of Hersch Klaff, founder and CEO of Klaff Realty LP. The wealth originates from decades of large-scale retail and commercial real estate acquisitions. Hersch Klaff's daughter, Adina Klaff, is a principal of Klaff Family Investments, which helps steward the family's broader investment activities. The foundation's investment strategy spans multiple asset classes, including direct real estate, buyouts, distressed debt, venture capital, and special situations. The portfolio touches real estate assets from retail power centers to mixed-use developments, including the Toys 'R' Us portfolio, a Rex Stores portfolio, a co-working site in Hollywood, and the Seaport San Diego project known as 1HWY1. Beyond direct property, the foundation makes venture and growth-stage investments — with exposure to Chlorum Solutions, a Brazilian chemical company, and Alliance, an early-stage firm. The investment posture also includes a secondary LP interest portfolio and an international mixed-use real estate portfolio in Brazil. Geographic focus centers on the United States, with selective deployment into Brazil. The foundation's grant-making supports other foundations across the United States. Its investment team draws on a network of long-standing operating partners. Cerberus Capital Management has been a frequent co-investor in major retail transactions, most notably the Albertsons acquisition, while the Schottenstein family's retail holding company joined the Safeway deal consortium. Lubert-Adler Partners has served as a joint venture partner in retail real estate across multiple cycles. Klaff operates at the intersection of a family office and an institutional co-investor: the foundation's capital sits beside Cerberus and Lubert-Adler on distressed and special-situation retail take-privates, blending philanthropic endowment structure with operator-led deal sourcing that originates from Klaff Realty's own pipeline. This architecture means the foundation frequently invests as a principal in transactions sourced or partially controlled by its own commercial real estate entity — a sourcing structure more typical of family offices than standard endowments.

## Sectors

- Real Estate
- Distressed Debt
- Special Situations
- Private Credit
- Venture (General)
- Secondaries & Special Situations
- Buyout
- Growth

## People

- Hersch Klaff — Founder and Chief Executive Officer
- Adina Klaff — Principal, Klaff Family Investments

## Questions

### How is the Klaff Family Foundation's capital deployed?

The foundation puts capital to work across direct real estate, buyouts, distressed debt, venture, and special situations. Real estate holdings include the former Toys 'R' Us portfolio, a Rex Stores portfolio, and mixed-use projects in Hollywood and San Diego. Venture investments include Chlorum Solutions in Brazil and Alliance, an early-stage firm. The foundation also holds a secondary LP interest portfolio.

### Who makes the investment decisions for the foundation?

Hersch Klaff, founder and CEO of Klaff Realty LP, is the ultimate decision-maker. His daughter Adina Klaff is a principal of Klaff Family Investments and is involved in foundation activities. The foundation's deal flow is heavily influenced by the sourcing activity of Klaff Realty LP.

### Who are Klaff's known co-investors and operating partners?

Cerberus Capital Management and Lubert-Adler Partners are the most frequent co-investors. Cerberus partnered on the Albertsons acquisition, while Schottenstein Stores Corp. joined the Safeway transaction. Dean Adler of Lubert-Adler has been a long-time joint venture partner in retail real estate.

### Does the foundation make direct real estate investments or only fund commitments?

The foundation makes direct real estate investments, owning portfolios of commercial and mixed-use properties outright. It also participates in buyout and special situation consortiums and makes direct, early-stage venture investments. Fund commitments are not the primary vehicle.

### What is the foundation's posture on distressed and special situation retail?

Distressed retail real estate and corporate carve-outs have been a core competency. The foundation, alongside Klaff Realty LP and partners like Cerberus, has repeatedly taken control of large retail portfolios — including Toys 'R' Us and Rex Stores — often through complex store-closure and lease-restructuring processes.

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Last updated: 2026-06-03T20:00:00.000Z

Canonical page: https://altss.com/profile/klaff-realty

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