Pennybacker Capital LLC is the new name for N3 Capital PartnersLLC, which will move from Fort Worth to Austin in October. The leadprincipal is Tim Berry, who co-founded N3 Development Ltd. and soldhis interests to Netherlands-based United Investment Co.in July2007. Pennybacker's other principals are George P. Bush,nephew of President George Bush and a former attorney for Akins,Gump, Strauss, Hauer & Feld LLP in Dallas; Vince Reyna, acertified financial analyst formerly with CIT Corporate Finance;and Michael O'Malley, a CPA who most recently was COO and CFO ofVisionWeb Inc.

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Berry tells GlobeSt.com that the $250-million investment plan isan "internal goal" that has been accomplished by picking upadditional equity to expand the $30-million N3 Opportunity Fund I,which will be fully invested by year's end.

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Berry says Pennybacker is backed with funds frominstitutional-quality family offices, mostly Texas with somecapital rolling in from the Northeast. The investment route runsfrom Phoenix to Florida, staying below the Mason-Dixon line.

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"We're not in the market to be vultures, but we're seeing anopportunity to provide liquidity to proven developers," Berry says,adding the team looks at $80 million to $100 million of investmentopportunities each month for its ready-to-go capital.

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To date, Pennybacker has pumped $10 million of equity into twoprojects, a mixed-use in Central Texas and the 500,000-sf DecaturCrossroads, a 65-acre project along US Hwy. 380 in North Texas,which is on the drawing board of Dallas-based Retail Connection LP.Berry estimates the two developments represent nearly $80 millionof build-out value.

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Berry says the team's "being really patient in this uncertainmarket" while it sizes up equity buy-ins from $1 million to $20million for three to five-year holds. The criteria are qualitysponsorship and irreplaceable locations for office, industrial,retail, mixed use and multifamily assets in addition to land plays.The pipeline includes buying senior notes to recapitalizations. "Wehave the ability to do the entire capital stack," he says.

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Pennybacker has leased an office in Austin's Chase Building at221 W. Sixth St. The team of seven will grow to 11, maybe an evendozen, within one year, according to Berry.

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The relocation from Fort Worth doesn't mean that Pennybacker iscompletely severing its ties to United Development, now led locallyby Berry's co-founder Jason Keene and Biff McGuire. "We haveinvested in their projects and hopefully will continue to invest intheir projects," Berry says.

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