Highly Crowdfunded Vehicle Hits Final Close at $151M

Origin Investments’ Fund III, raised from more than 450 investors, is intended to acquire $600 million in value-added commercial properties.

By Scott Baltic, Contributing Editor

Michael Episcope

Michael Episcope, Origin Investments

CRE private equity firm Origin Investments, of Chicago, has completed the final closing for its fully subscribed $151 million Fund III, the company announced last week.

The nominal $150 million fund, which hit its $55.5 million first closing in March, is intended to acquire $600 million in value-added commercial properties.

The goal is that when fully invested, Fund III will have more than 15 multifamily and office properties in eight high-growth markets across the U.S.: Atlanta, Austin, Charlotte, Chicago, Dallas, Denver, Houston and Raleigh-Durham, N.C. Since July 2016, it has invested about $38 million in eight properties valued at more than $257 million.

The $151 million was raised from more than 450 investors and is Origin’s largest fund to date. Although more than 92 percent of those who invested in Origin’s Funds I and II also invested in Fund III, the latest fund reportedly also drew hundreds of new investors.

Aspects of the Jobs [Jumpstart Our Business Jobs] Act opened the door, making real estate investing more accessible by lowering minimum investments and increasing the number of investors who could participate,” Origin co-founder Michael Episcope told Commercial Property Executive. “We interpreted the JOBS Act as the opportunity to attract a greater number of investors through a lower entry point.

Recent investments

  • In January, Keystone 100 in Durham, N.C., a 62,300-square-foot Class A office building in Keystone Office Park, that the fund purchased from American Real Estate Partners.
  • In March, Puritan Mill, in the West Midtown submarket of Atlanta. The fund paid $26.9 million for Weaver & Woodbery Co.’s majority stake in the 83,000-square-foot loft office project, which the fund now co-owns with Urban Realty Partners. Plans have been made to add retail and event space on an adjacent 1.9-acre parcel later this year.
  • In April, 511 Meeting St., a 221-unit multifamily development in Charleston, S.C.
  • Earlier in 2016, Fund III invested in Trinity Place a four-story, 114,547 square-foot, Class A office building in Raleigh, N.C.; a 334-unit apartment community located near the Texas Medical Center in Houston; Lee Park Towers, a 121,000 -square-foot, two-building Class B office complex in Dallas’ Uptown/Turtle Creek submarket; Cherry Creek Plaza, a 314,000-square-foot, two-building office complex in suburban Denver; and a 448-unit apartment community in Palatine, in suburban Chicago.

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