This is Madison Marquette's first equity fund, and at least as measured by the participants, was met by high demand from the market. Investors include ABP, ColoradoPERS, OhioSERS, PennsylvaniaSERS and Wells Fargo.
CFO Paul Andrews tells GlobeSt.com that demand in part is due to Madison Marquette's rather unique position in the retail investment space. "We come from the development/operations side. Most of the other private equity funds outsource their operations and leasing activities. We, though, will be fully integrated." He says that model was a differentiator as it spoke with investors.
Madison Marquette has already closed on three properties for the fund and has three others in the pipeline, Andrews says. These six transactions total $120 million in equity – or one-quarter of the fund's equity investment. The company couldn't discuss the fund publicly until now because of securities regulations, Andrews says.
These recent transactions include Asbury Park, a 400,000-sf redevelopment of one of the last available sites at New Jersey's oceanfront community; Montgomery Promenade, a development of a 325,000-sf town center project in Montgomery Township, NJ; and Bayfair Center, a revitalization and remerchandising of an aging regional mall in San Leandro, CA.
These projects illustrate the fund's overall investment criteria, Andrews says. Basically it will be looking at three categories of properties, he explains: existing malls and community centers that can be revitalized for value add; reformatting urban in-fill locations by expanding and remerchandising retail uses and by adding new uses such as residential; and developing town center urban villages.
The fund will focus its investments in the markets where Madison Marquette already has a local presence, including Philadelphia, New Jersey, Florida, California, Seattle, and Washington, DC.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
