Two major US investment plays have formed a $250 million fund to pick off prime office assets.
The Roseview Group on behalf of the Roseview Evergreen Fund, a $500 million discretionary real estate separate account with a major U.S. corporate pension fund, and PM Realty Group (PMRG), a national real estate investment and property services company, have formed Roseview-PMRG Fund I, LLC to acquire and reposition office properties across the United States.
Roseview-PMRG Fund I, LLC seeks to acquire and reposition existing office assets, which can be acquired below replacement cost, by investing capital to upgrade building common areas and mechanical systems and to fund tenant improvements and leasing commissions.
The Fund will bring an operational approach to owning office assets and, in addition to growing revenue, will focus on operating buildings more efficiently, improving the tenant experience and reducing waste and promoting eco-friendly consumption.
The Fund will target mid-teens returns with total investment per asset of $15 to $65 million in primary and secondary markets.
“This venture builds on a 20-year relationship between the principals of our two firms and our institutional partner,” said Vince Costantini, managing partner and CEO of The Roseview Group.
“The economy continues to recover and is fueling new job growth in many markets. As a result, we believe there exists a strong risk-adjusted opportunity to acquire and reposition existing office buildings and the Fund is well-positioned to competitively pursue these opportunities.”
The partnership has already closed on it first acquisition, a 137,000 s/f office building in Houston, Texas in the Greenway Plaza submarket.