"We are looking for assets that are located anywhere within atwo-hour car ride from DC," Schlager tells GlobeSt.com. The firmexpects it will invest between $4 million to $5 million pertransaction, unless it teams up with an institutional partner, inwhich case it would beco-investing in a much larger project, hesays. This is Rock Creek's first co-mingle investment fund afteryears of investing through JVs and other partnerships, he adds.Thefund, which has a five-to-seven year time frame, might also buytroubled or underwater notes.

Formed in 2002, Rock Creek has worked with more than 100 privateinvestors and pension plans on individual investments in the $5million to $20 million range--a sweet spot that Schlager describesas too small for institutional players and too large for high-networthindividuals or mom-and-pop investment shops. The fundcompleted its first purchase in November--the 31,594-square-footPear Tree Village Center on Route 1 in Alexandria, VA. It came witha 20,000-square-foot pad site, which Rock Creek will either developand lease or sell outright.