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STAMFORD, CT-Eight months after its formation, RiverOak Investment Corp. Inc. has closed its RiverOak Realty Fund III for investment after raising $25 million in equity, which was $10 million more than its initial target. Utilizing its co-investment commitments with partners, including Redbrick Partners II, the underlying asset value of RiverOak Realty Fund III is expected to be between $150 million and $200 million over its three- to seven-year life span.

“The fund attracted investors from a broad range of disciplines,” says George Yerrall, managing director of locally based RiverOak Investment, noting that 15% of the equity is represented by real estate professionals. The company’s Fund I attracted $4.6 million in equity investment and Fund II raised $10 million. Both funds were closed after 18 months of marketing to investors. Yerrall characterized the significant investment interest in Fund III, which closed after eight months, as “a significant sign of our growth and success.”

RiverOak funds invest in gap equity positions of $1 million to $4 million per transaction in deals that are typically sized in the $8-million to $50-million range, company officials say. RiverOak’s projects are all located in the Boston-to-Washington corridor. “We specialize in diversification and complex projects requiring significant asset management expertise where operating results and cash flow can be significantly improved,” Yerrall notes.

The fund’s expected investment mix will include 20% multifamily, 30% office, 10% light industrial, 20% single-family home development and 20% condominium development, according to Stephen DeNardo, managing director, who together with Yerrall, manage the funds’ operations.

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