According to Brickman senior vice president of acquisitions and finance Gabe Boyar, the firms three principals, Bruce Brickman, Roderick O'Connor and Kathleen Corton, "have committed to make a serious investment in the fund." Boyar would not reveal the fund's other investors, but he tells GlobeSt.com they are "all high-net-worth investors who have invested with us previously on a one-off basis." Brickman, O'Conner and Corton will manage the fund.
The partnership's first acquisition is 1225 19th St. in Washington, DC, a 72,000-sf office building. The firm will announce the purchase within the next two weeks. No other deals are currently under consideration.
Boyar notes that the difference between this fund and other similar investment vehicles lies in the acquisitions it will target. "We look for value-added office product in central business districts where we can raise the level of service," he says. "We target buildings that have smaller floorplates, because then you're not committed to any one single tenant. It avoids putting all our eggs in one basket."
Office and residential properties located in here and in Washington DC will be the funds primary targets. Each asset will carry roughly 65% to 75% of leverage and properties will be held for roughly five years.
The motivation behind developing the fund is that "it brings us additional credibility when dealing with sellers who don't know our reputation in the market," states Boyar. "Previously it was much easier to do one-off deals. Today, sellers look to see that you have cash in hand and the fund structure gives you that flexibility with sellers who need that kind of reassurance."
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