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SAN FRANCISCO-Shorenstein Properties LLC says it has re-closed its latest fund after growing its capital commitments to more than $2 billion. After previously closing with $1.3 billion in committed equity Shorenstein re-opened the fund to additional commitments at the end of 2007 to take advantage of disruptions in the debt markets. Shorenstein itself has committed $154 million to the fund.

The locally based company’s chief executive Doug Shorenstein says the dislocation of the credit markets last summer, and the ongoing uncertainty created by that event, makes this a good time to have committed discretionary capital. “We think the market in front of us will present opportunities to make attractive debt and equity investments for those investors with the right combination of patience, expertise and capital,” he says.

Fund Nine focuses on value-added office and mixed-use properties located in major markets throughout the US. In addition to single asset acquisitions, investments have included portfolios of properties, preferred equity, mezzanine loans, ground-up developments, and structured joint ventures.

Fund Nine made its first investment in September 2007. Its investments to date include seven mezzanine loans in the total principal amount of $373 million backed by Class A office properties in New York; Washington, DC; Silicon Valley; and Southern California. The fund also holds 100% equity interest in a 350,000-sf office building located in the Galleria submarket of Houston, Texas.

Most recently, Shorenstein provided a $125 million junior mezzanine loan to finance a portion of the purchase of 650 Madison Ave., a 601,604-sf trophy class A office and retail building located in the Plaza District of Manhattan. The loan is part of a larger financing package made to the buyer of the property, a joint venture between the Carlyle Group and Ashkenazy Acquisition Corp.

The fund’s subordinated debt holdings include part of a construction loan for the development of Moffett Towers, a 900,000-sf office campus now being built in Sunnyvale, CA; and mezzanine loans on the MTV Building in Santa Monica, CA; two office properties in Washington, DC; and four office buildings in New York City, including 650 Madison Ave. and its neighbor, 660 Madison Ave.

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