ARLINGTON, VA-Locally-based FD Stonewater and the Roseview Group, a Boston-based company, have launched a $100 million, three-year fund, which includes leverage, to invest in properties with government tenants nationwide. FD Stonewater principal Richard Mann tells GlobeSt.com that there are a few deals in the pipeline under NOI, although he declined to discuss specifics.
The fund will look at build-to-suit development and redevelopment opportunities as well as value-add and opportunistic repositioning of certain properties.
We Also Recommend:
FD Stonewater’s deep expertise with federal government space needs will be key to the fund’s success, Mann says. Despite the government cutbacks in its space needs, Mann says he is “confident we will find those pockets that will give us good risk-adjusted returns.”
Indeed, the environment for investors in government-occupied properties has gotten very tricky, very fast. Two years ago, the federal government was savior to many real estate markets, particularly in the Washington, DC area. With the national budget and debt situation in a shambles, though, it can no longer be counted on to play that role. At the same time, the Obama Administration has launched, with Congress’ blessing, an ambitious plan to sell off excess government-owned properties.
FD Stonewater’s creds to navigate these changes include more than 40 million square feet of leasing transactions and 12-plus development projects of federal government occupied space.
“In a lot of ways the situation is no different now than it was five years ago,” Mann says. “The government is such a big consumer of real estate that there will always be deals to be made.”
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
