The fund initially will target infill industrial/R&D assets in the Bay Area before expanding the search to additional West Coast markets. D.R. Stephens principal Lane Stephens did not return a Tuesday phone call seeking additional information, such as the target IRR for investors and the investment timeline.

D.R. Stephens was formed in 1973 to consolidate and manage the real estate investment activities of the Stephens Law Firm. In 1999, the company began focusing on industrial and research and development real estate in the greater Bay Area. In late 2005, it began forming joint ventures with pension fund advisors.

In December 2005, it formed Fortran Court Investors with Buchanan Fund III to acquire a two-building, 142,687-sf portfolio on Fortran Court in North San Jose from Carlyle Group for $18.46 million. One of the buildings was leased to Applied Materials until August 2007 for $1.36 sf, and the other is leased to Marshall & Isley Bank until October 2008 for $2.30 sf, according to an investment memo on the company's Web site.