MORRISTOWN, NJ-Dornoch Holdings LLC, based here, has formed its second fund, Dornoch Co-Investment Fund LP. Aimed as acquiring and repositioning distressed residential and commercial properties in the New York/New Jersey metro area, "it will provide resources for us to launch $150 million in new projects," says Paul Scura, managing director of Dornoch.

Founded in late 2004 by Glen Fishman and Frank Macios, the company's first fund, the Dornoch Opportunity Fund LP, has become involved in the redevelopment and repositioning of about 600,000 sf of commercial and MXD space and more than 1,500 residential units with an approximate value of $180 million. "We have had success in identifying under-utilized properties in urban areas of New Jersey, such as Paterson, New Brunswick, Rahway and Newark, which are experiencing revitalization," says Scura, who is also a managing partner of Scura, Rise & Partners, a New York-based private merchant bank. SRP has raised capital totaling $12 million for both of Dornoch's funds.

The new fund is a designated fund. Specific projects being targeted include the purchase by Dornoch Ellison LLC, an affiliate of Dornoch Holdings, of a vacant city-owned property in Paterson that's being redeveloped as a public access Cablevision studio Another project is Dornoch Holdings' acquisition of a joint venture interest in an industrial building in Passaic, NJ that will be converted into 175 residential units.

And a separate affiliate, Dornoch Paterson LLC, currently has a proposal before the City of Paterson to redevelop the Great Falls Historic District. Dornoch's plan calls for a combination of residential, retail, service and recreational uses.