LOS ANGELES—Regent Properties has closed its most recent fundraising efforts, raising $300 million in equity commitments. The $300 million in commitments exceeds Regent Properties' fundraising goals by 50%. The investors in the fund include BlackRock and Caxton Alternative Management, as well as high net worth family offices.
“We believe we exceeded our goals both because of the attractiveness of the strategy, but also because of the increasing institutional desire to invest directly through developer/operators rather than just through allocator funds,” Eric Fleiss, president at Regent Properties, tells GlobeSt.com.
Regent Properties plans to use the funds to invest in value-add and opportunistic office properties in primary and secondary markets west of Texas. It already has a portfolio of properties in Phoenix, San Diego and Dallas. Single property values within this strategy will range from $15 million to $75 million. “We believe the risk/return tradeoff today on assets in the markets we are targeting are very attractive relative both to historical metrics and the economic state of these markets at this point in the cycle,” Fleiss says. “Most of the markets we are investing in have rents that are still very close to bottom-of-the-trough rental rates, with little to no new supply of office product coming online, and pricing below replacement cost. This to us is very compelling both absolutely and relatively.”
Regent Properties held its initial close of this fund in September of last year with $60 million in capital commitments.
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