HOUSTON—The Roseview Group, based in Boston, on behalf of the Roseview Evergreen Fund, a $500 million discretionary real estate separate account with a major U.S. corporate pension fund, and locally based PM Realty Group, a national real estate investment and property services company, have formed Roseview-PMRG Fund I LLC, a $250-million discretionary fund to acquire and reposition office properties across the US.
The fund seeks to acquire and reposition existing office assets, which can be acquired below replacement cost, by investing capital to upgrade building common areas and mechanical systems and to fund tenant improvements and leasing commissions. The fund will bring an operational approach to owning office assets and, in addition to growing revenue, will focus on operating buildings more efficiently, improving the tenant experience and reducing waste and promoting eco-friendly consumption.
According to the two firms, the fund will target mid-teens returns with total investment per asset of $15 to $65 million in primary and secondary markets. The partnership has already closed on it first acquisition, a 137,000-square-foot office building in Houston in the Greenway Plaza submarket.
Roger Gregory, president of investments at PMRG, tells GlobeSt.com that “While market fundamentals and conditions continue to improve in select markets and submarkets throughout the US, we believe that we will have significant opportunities to acquire value added properties with tremendous upside as more properties come to market.” He adds that “because Roseview-PMRG Fund I is a discretionary fund we are able to assure sellers and broker of a quick and efficient close. We have already demonstrated this by closing on our first acquisition.”
Vince Costantini, managing partner and CEO of the Roseview Group, notes that “This venture builds on a 20-year relationship between the principals of our two firms and our institutional partner. The economy continues to recover and is fueling new job growth in many markets. As a result, we believe there exists a strong risk-adjusted opportunity to acquire and reposition existing office buildings and the fund is well-positioned to competitively pursue these opportunities.”
Rick Kirk, PMRG’s chairman and CEO, adds that “the combination of discretionary investment capital with a strong national investment and operating platform will give our team a tremendous competitive advantage.” Kirk continued by saying, “PMRG has the investment track record and operational expertise to develop and execute a strategic capital plan at each property and deliver positive results.”