San Francisco Firm Surpasses Capital Raise for $200M Fund, Targets Value-Add Returns

SAN FRANCISCO—Tidewater Capital, a San Francisco-based real estate investor and developer focused on the Bay Area, has exceeded its initial target of $200 million in equity commitments for its third discretionary fund with a diverse pool of limited partners, including university endowments, charitable foundations, and family offices, participating in a vehicle with a $250 million cap.

“We have tremendous confidence in the long-term prospects of the Bay Area,” said Tidewater Managing Principal Craig Young. “While capital markets broadly have been deeply challenging, both our returning and our new investment partners have placed a great deal of confidence in our ability to navigate a rapidly evolving market to capitalize on a Bay Area rebound.”

Tidewater will pursue investments across multiple property types and the firm will execute renovation and repositioning business plans, as well as select entitlement and ground-up development opportunities.

“With TC Fund III, we look forward to continuing to invest in our core product types of residential, industrial, and office, while also exploring select opportunities across niche asset classes as we’ve done historically,” said Tidewater Principal Ross Stackhouse, in a prepared release. “We will target value-add returns while exploring core plus opportunities with unique avenues to upside and select development opportunities with strong downside protection.”

Tidewater’s previous investment vehicles have capitalized an array of projects across the Bay Area, including in San Francisco, the East Bay, and the North Bay. Notable prior investments include 1028 Market Street, a 193-unit mixed-use apartment building in the Mid-Market neighborhood of San Francisco which began its life as an innovative Food Hall; and 888 Post Street, a 30,000 square foot commercial asset which Tidewater converted to a Navigation Center for Transitional-Aged Youth experiencing homelessness. Tidewater’s most recent fund also acquired Eastmont Town Center at 7200 Bancroft Avenue in Oakland, a 540,000-square-foot commercial asset housing an assortment of government and healthcare related tenants.