RiverOak Investment Launches Third Real Estate Fund

DeNardo says the fund is expected to exceed the $15-million target prior to its close for investment. He predicts that the purchasing power of the fund will be between $60 million to $100 million over the five-year to seven-year life span of the fund. The fund will invest anywhere from $1 million to $4 million per transaction. DeNardo and George Yerrall, managing director, will manage the fund.

"We specialize in diversification and in complex projects requiring significant asset management experience where operating results and cash flow can be improved," he says.

The fund's investment portfolio mix is expected to be: 30% multifamily, 30% office, 20% condominium development, 10% light industrial and 10% single-family home development. DeNardo says the firm is looking at some investment opportunities in both Westchester and Fairfield counties that could be included in the newly formed real estate fund.

RiverOak Realty Fund I, launched in 2000, has returned 81% of its investors' dollars and continues to own interest in five properties. Its projected rate of return is 19% and is fully invested, RiverOak officials say. RiverOak Realty Fund II, which was launched in June 2002 and closed last June, is approximately 90% invested and is projecting returns of 17%.

DeNardo says, "In Fund II, we did more condominium development and preferred equity deals, reflecting a market trend. Plus, there are very few worthwhile office buys at present."

Some of the properties in the area that RiverOak has investment interest include: approximately $1 million invested in 400 Atlantic St. in Stamford (Fund I); $1 million invested in Pickwick Plaza in Greenwich (Fund II); $1.5 million in 140 West 124th St. in Harlem (Fund II) and $2.5 million invested in a multifamily development in Groton CT, (Funds I and II).