St. Pierre says Fund Two co-invested in Fund One in the Residences at Boulder Creek, a yet-to-be-developed senior housing project in Boulder, CO, and in an unnamed office portfolio in northeast Ohio. "We recently closed on the office site with another partner, and it's not completely done yet, so we'd prefer not to name it," he says. The company also lost a deal Friday on an 11th property for Fund One, St. Pierre says. "That property just isn't materializing. We have available capital to make another $2 million to $3 million investment."
The second fund is going to be controlled with the same investment philosophy as the first, St. Pierre says, with both funds targeting diversity in both geography and type. The projects bought include retail, mixed-use, apartments, senior housing, student housing, office and industrial. "My partner Mitchell Schneider is known for being successful in retail, but we're very comfortable with all property types. We're really just looking for good real estate that's well located, and diversification is good." The properties also include sites such as the Launch at Hingham Shipyard, a mixed-use retail project on Boston's harbor.
Another difference in the company's fund philosophy, St. Pierre tells GlobeSt.com, is the attraction to long-term holds instead of short-term. "Most capital funds being raised are invested in a property for a two-to-three year hold, basically creating a merchant building that you're just going to sell," he says. "We don't feel we have to sell upon completion. We're very comfortable building the project, refinancing it, even putting on a five- or 10-year permanent loan, then ultimately liquidating our investment 10-to-12 years down the road."
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