WASHINGTON, DC-Federal Capital Partners has launched a $500-million equity fund, according to paperwork filed with the Securities and Exchange Commission. The fund, called FCP Realty Fund II, is moving forward with commitments of $122.5 million from at least seven investors with a goal of raising another $377.5 million from investors. The company declined to comment to GlobeSt.com on its plans.

This is the second fund for the company, which recently began moving beyond its DC roots and past its sweet spot of value-add acquisition. In an earlier interview with GlobeSt.com, managing partner Alex Marshall said that it was looking closer at second tier markets in the Mid-Atlantic region and has an active pipeline in the Raleigh, NC and Philadelphia markets.

In December 2010, the firm closed on a $13.75-million acquisition of a multifamily property in Baltimore called the Munsey. It is an 18-story, 146-unit building with 4,000 square feet of ground-floor retail. It also recently partnered with Grubb Properties on the acquisition of two apartment communities located in Raleigh, NC and Chapel Hill, NC. Valued at $42 million, the new venture includes Riverwoods apartments located on Six Forks Road in Raleigh, NC and the Glen Lennox apartment community on Hamilton Road in Chapel Hill, NC.

FCP is also putting resources toward building out American Community Properties Trust, now renamed the St. Charles Cos. After securing a $10 million revolving credit line from Wells Fargo Bank, FCP is poised to begin a new wave of development for the 9,100-acre planned community located in St. Charles, MD.

The firm’s first fund, FCP Fund 1, is a $230-million private equity fund that FCP closed in October 2008. According to an earlier interview FCP co-founder and partner Esko Korhonen had with GlobeSt.com, FCP Fund I was expected to deliver between $800 million to $900 million of purchasing power to the company with plans to target both hard assets and paper.