Coretrust Gets $200M for Value-Add Office

LOS ANGELES—Hawkeye Partners has chosen Coretrust Capital Partners for the Scout Program. As part of the program, Coretrust has closed on its first fund, Coretrust Value Fund I, with a $200 million commitment from the Scout Fund II. Hawkeye Partners will manage the fund, which has the ability to expand to $300 million. The capital will be used to purchase value-add office properties in major metropolitan markets throughout the country.

“The Scout Fund is designed to be able to assist major institutional investors to identify new groups to be able to manage their money,” John R. Sischo, a managing principal at Coretrust Capital Partners, tells GlobeSt.com. “It is very difficult for institutional investors to be able to go through a process of identifying new managers as they try to rake through more established managers. They are constantly changing their strategies and means. Scout provides that pathway for them to do it, and it allows groups like ourselves to be able to be identified as a prospective manager for them, where historically they would not have that opportunity.”

Coretrust Capital partners formed last year by former executives from Thomas Properties. According to Sischo, it has always been the company's business plan to raise institutional capital for the purchase of quality assets. “It was always our intention as a firm to go back into the investment management business,” he says. “We spent most of the first year and a half really putting in the foundation to ensure that the three partners were synced up and putting our accounting systems in place. This was always our plan and Scout really facilitated that plan.”

The fund will focus on office product throughout the nation, beginning with the Los Angeles MSA, where the firm is headquartered, and then out to Houston, Philadelphia and DC. “Those are areas where we either have offices or properties,” says Sischo.