SAN FRANCISCO-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement, but GlobeSt.com has learned that locally based Farallon Capital Management LLC has completed fundraising for Farallon Real Estate Partners, a US real estate investment pool with commitments of $375 million. FREP is targeting income-producing office, multifamily, retail, and industrial properties and will seek to take advantage of Farallon’s unique insights, proprietary deal flow, capital market relationships and global reach, according to the firm.
Investors in FREP include endowments, foundations, family offices and corporate pension plans.
Andrew Spokes, Farallon’s managing partner, explains that “Farallon has been investing in real estate for over 20 years.” And over that period, he says, “we have allocated well over $3.2 billion of capital to more than 130 transactions in income-producing properties.”
According to Spokes, “Raising dedicated commitments allows us to pursue an investment program tailored to this strategy, fulfilling a targeted investor mandate. The current commercial real estate market plays to the strengths of our US real estate team and we are looking forward to investing these new commitments for our partners.”
Farallon’s US Real Estate Team is co-headed by Rocky Fried, managing member at Farallon and Dan Hirsch, managing member at Farallon, who are supported by a team of eight investment professionals. Both Fried and Hirsch have spent over 10 years at Farallon.
Over the next three years, according to Fried, “we see the real estate industry continuing to restructure with capital in shorter supply for off-the-run assets and situations.”
Hirsch adds that “consistent with our focus on fundamentally sound yet undervalued assets, we have recently made several investments in cities with significant job growth and higher barriers to entry, where we are able to purchase properties at a discount to replacement cost.”
Some of those investments, Hirsch adds, are “burdened with complicated and broken balance sheets.”