Fund II has been capitalized with $200 million, which isexpected to deliver $800 million in purchasing power. The fund,which will focus on value add opportunities across all assetclasses, has not closed on any investments yet; it does have,though, two letters of intent on investments that equal between $40million and $50 million together, Balsam tells GlobeSt.com. One isan apartment development deal in Atlanta; the other, an industrialacquisition in Miami. "My role will be to help place the $200million and run the fund from PRS' investment platform," hesays.

Fund II is an expansion of the company's existing investmentcapabilities. But the firm is looking to expand into otherinvestment vehicles over the next 12 to 18 months, according toBalsam. "We are evaluating core, core plus, distressed assets and aland fund."

For the past 12 years, Balsam has been the senior investmentofficer at Fidelity Management & Research's private equity realestate group. Prior to joining Fidelity, he was a real estateworkout consultant at E&Y Kenneth Leventhal.