Origin Launches New $100M Fund

CHICAGO—The Chicago-based Origin Capital Partners, a real estate private equity firm, has just launched a new $100 million investment fund. Called Origin Capital Fund II, LLC, the fund will go after a range of property types including medical office, multifamily, office, industrial and retail in a specific set of US markets.

The launch follows the closing of The Origin Capital Opportunity Fund, also known as Fund I, which raised and allocated almost $26 million in equity. This portfolio consists of 11 properties in five states and totals about $163 million in assets.

So far, Origin officials say Fund II has received subscriptions in excess of $30 million. When fully committed, Fund II will have at least 10 assets, with no single asset accounting for more than 10% of the equity. The firm has seeded Fund II with four investment properties.

• Lux24 – a 12-story, 67-unit multifamily development in Chicago with 4,400-square-feet of ground floor retail space.

• Naper Place – a mixed-use development in Naperville, a Chicago suburb, that features 49 apartment units leased to North Central College and 6,900-square-feet of retail space.

• Kingwood – a three-story, class A, 90,000-square-foot medical office building outside of Houston.

• Arium North Point – a 236-unit multifamily development in an affluent Atlanta suburb.

Fund II will take a diversified geographic approach. Origin examined US demographic trends, economic fundamentals and investment liquidity to identify 12 major markets to target and decided on the following: Atlanta, Austin, Charlotte, Chicago, Dallas, Denver, Houston, Minneapolis, Orlando, Phoenix, Seattle and Tampa.

Origin plans to generate outsized returns by finding opportunities at below market pricing levels. Then, they will focus on creating value and maximizing NOI by redeveloping, repositioning and re-tenanting properties and finding operational efficiencies. Furthermore, to demonstrate their commitment to investors, the principals will invest a significant amount of capital, a minimum of 10% of the capital raised.