The assets being targeted will range from $10 million to $130 million. The fund will invest roughly $400 million dollars as they work out deals with roughly 50% debt, Paul Marcus, president of Marcus Partners tells GlobeSt.com."We're looking at everything from distressed to just straight up purchases," he explains. "I think the fund will end up being probably about 60% to 70% C interests of either preferred equity or just direct fee ownership interests. And another 30% will be more debt related or 'special situations'."
The fund will seek properties west of the Mississippi under certain conditions, noting it would have to be " a larger transaction that would include assets on both sides" of the river, Marcus says. "We would look at anything from cash-flowing real estate in a partnership-type transaction in a preferred equity structure, which is a lot of stuff that we're talking about now, to buying the assets and turning them around."
Although this is a possibility, the fund has a time-frame of five to seven years, holding onto the majority of the property for four to seven years. "We think we're still early in this cycle," Marcus says. "and we believe there will be an enormous amount of opportunities becoming available over the next six to 24 months."
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