BOSTON—A new $250-million discretionary fund to acquire and reposition office properties across the United States has been launched by a partnership of The Roseview Evergreen Fund and PM Realty Group.
The Roseview-PMRG Fund I, LLC seeks to acquire and reposition existing office assets that 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, according to the announcement by Boston-based The Roseview Group, on behalf of The Roseview Evergreen Fund, and PM Realty Group, a real estate investment and property services company. The Roseview Evergreen Fund is a $500-million discretionary real estate separate account with a major U.S. corporate pension fund. The Roseview Group manages that fund.
The Roseview-PMRG Fund I, LLC will focus on operating buildings more efficiently, improving the tenant experience and reducing waste and promoting eco-friendly consumption, the fund states in its announcement. It will target mid-teens returns with total investment per asset of $15 million to $65 million in primary and secondary markets.
“This venture builds on a 20-year relationship between the principals of our two firms and our institutional partner,” says Vince Costantini, managing partner and CEO of The Roseview Group. “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.”
“We are very excited about this opportunity,” says Rick Kirk, PMRG’s Chairman and CEO, “the combination of discretionary investment capital with a strong national investment and operating platform will give our team a tremendous competitive advantage. PMRG has the investment track record and operational expertise to develop and execute a strategic capital plan at each property and deliver positive results.”
The partnership has already closed on it first acquisition, a 137,000-square-foot office building in Houston in the Greenway Plaza submarket.