Cantor Fund Holds First Close on $100M Offering

ST. PETERSBURG, FL—Locally-based Cantor Fund Management, LLC reports it has held a first close on approximately $100 million for its second offering called Cantor Real Estate Income & Opportunity Fund II.

Company officials say that it plans to take its Fund II, which is currently structured as a limited partnership, public and convert investors' interests into shares within the next three years in order to capitalize on opportunities in the REIT market

“Given the still-volatile stock market and given the state of the economy with historically low interest rates, LPs are looking for better, more consistent yield. Real estate offers a stable alternative investment in the form of a hard asset, is significantly value-priced, and will continue to be over the next several years as there are terrific assets trading well below replacement cost,” Cantor COO Stephen Collins says.

The firm is aiming for a second close by the end of the year of Fund II and a final close by the end of the third quarter 2015. Fund II, which is conservatively seeking a 25% net IRR and currently up 54% in appreciated value, is targeting $500 million in equity commitments to acquire opportunistic, low risk core-plus income producing commercial real estate with low to moderate debt. Those assets are to be located in primary and secondary markets throughout North America at significant embedded discounts to replacement cost, prior sale, and original debt, Cantor officials state.

With a focus on secondary markets like Atlanta, Charlotte, Denver, and Phoenix, Fund II will seek to provide investors with asset diversification. “We will have set ourselves up nicely for an IPO or potential acquisition,” Collins says.