Marcus Partners Closes Largest Fund at $875M
The new investment vehicle will target mostly industrial and multifamily assets.
Marcus Partners has completed fundraising for Marcus Capital Partners Fund V LP, a value-add real estate fund with commitments totaling $875 million.
Marcus noted that the fund total exceeded both the original $750 million fundraising target and the $850 million hard cap. A spokesperson told Commercial Property Executive that Marcus had demand from investors “well in excess of $875 million.”
The fund had strong participation from existing investors, along with several new institutional partners, Patrick Sousa, Partner, COO & head of Capital at Marcus Partners, said in a prepared statement.
The firm is active along the East Coast, from New Hampshire to Georgia, and maintains offices in the Boston, New York City, Washington and Atlanta metro areas.
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The Marcus spokesperson told CPE that the fund’s first close of investor commitments was last July, with fundraising completed earlier this month. The fund started investing this past November.
Its two acquisitions so far are Creekside Distribution Center, a 539,000-square-foot Class A industrial asset in Atlanta, and Panther Riverside Parc, a 280-unit multifamily asset, also in Atlanta.
The seller in the former acquisition was Taurus Investment Holdings, and JLL arranged the deal. The property reportedly is 77 percent leased, with tenants including Pods and Expando Distribution.
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Marcus Partners has focused its value-add strategy on industrial and multifamily investments in recent years, although it has not ruled out additional property types.
Sousa helpfully fleshed out that strategy for CPE. “We have bifurcated our approach to the industrial and multifamily asset classes into subsectors. In industrial, these subsectors are light industrial, metro-centric logistics, build-to-suit manufacturing and industrial outdoor storage.”
In multifamily, he continued, “we are pursuing ground-up investments in supply-constrained markets as both the general partner and as a limited partner where we have the opportunity to add value to the partnership via our vertically integrated platform. We are also seeking to acquire recently delivered multifamily assets below replacement cost in select Southeast non-supply-constrained markets, such as metro Atlanta.”
Sousa added that the company continues to position its strategy to align with durable secular growth trends, including national defense modernization and electrical grid investment, which are translating into tangible real estate investment opportunities. “For example, on the utility side, we are pursuing IOS and warehouse facilities tied to utility grid modernization initiatives.”
Finally, he said, “we continue to evaluate select investment opportunities within our “other” category…. For example, we are evaluating a Northeast build-to-rent strategy, although we are keeping a close eye on potential regulatory risks. We are also actively evaluating self storage opportunities….”
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