NEW YORK, NY – Real estate platform Machine Investment Group has closed its inaugural fund vehicle, Machine Real Estate Fund I at $312.7 million.
The fundraise includes primary commitments of $245.7 million and co-investments of $67 million. The debut fund’s investors include public and private pension funds, international investment managers, foundations, family offices and limited private investors.
Machine, which launched in 2020, targets equity and debt opportunities, such as property repositioning, non-performing loan acquisitions, and broad special situations. The platform primarily focuses on the nation’s top 35 metropolitan areas.
“We appreciate the strong support of our limited partners at this transformative time for our firm,” says Eric Rosenthal, managing partner and co-founder of Machine. “Launching a fund during a period of dislocation aligns well with our mandate to identify value-add and opportunistic investments across all commercial asset classes and capital stack positions.”
Rosenthal adds, “We believe we have assembled an attractive initial portfolio for our investors and continue to see tremendous opportunity within the domestic middle-market.”
Following the final close, the fund has deployed 67% of committed capital, including co-investment.
The fund’s investments include a nine-acre, office-to-residential redevelopment site in San Jose, CA; a rescue capital loan secured by two hotels in Los Angeles, CA; a 470,000-square-foot industrial project in Jacksonville, FL; a 370,000-square-foot industrial redevelopment in Nashville, TN; a preferred equity loan to a public hospitality REIT; a 258-unit, value-add multifamily portfolio in Kansas City, MO; and a 90,000-square-foot, single-tenant office/R&D acquisition in Sunnyvale, CA.