WASHINGTON, DC-The Matan Cos. has closed on its latest real estate fund, Matan Fund IV, a $100 million pool of equity that will be enhanced with moderate leverage and strategic partnerships. The company will be investing in three areas over the next 24 months, principal Mark Matan tells GlobeSt.com: one-third of its activity will be devoted to multifamily development; one-third will be its usual government build-to-suit; and one third will be in suburban office market acquisitions.
For the latter asset class—one that has certainly seen better days--Matan says the timing is right. "We think the suburban office market is either at the bottom or close to it. It is attractive now because we are seeing well leased assets that are pricing as poorly as" ones with large vacancies. "So we think it is time to get back in there."
Meanwhile the company has already launched two multifamily development projects totaling 400 units in the Frederick, MD, submarket under this fund. One is Prospect Hall, which is currently under construction. Another project in Urbana is slated to start construction in Spring 2014, Matan says.
Multifamily is a relatively new asset class for the company. Matan says they chose the Frederic market due to its proximity and demographics.
Matan Fund IV also purchased Federal Capital Partners' interest in the 332,000-square foot National Cancer Institute's Advanced Technology Research Facility in Frederick, MD.
Matan Fund IV has several deals under contract with closings pending for late 2013 and Matan tells us that one will be announced shortly.
All told, Matan says, "the fund should be involved in $500 million worth of transactions through the use of moderate leverage coupled with strategic partnerships."
"We anticipate being fully invested in 18-24 months given our current pipeline."
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