JBG kicked in 95% of the equity, much of it redeployed from its Fund 6, according to Robert Scheer, president and founder of Scheer Partners. Scheer will serve as the fund's managing member.
Scheer tells GlobeSt.com that the fund's pipeline already has three projects valued in the aggregate $120 million, one of which could close within the next 30 days. All are located along Maryland's 1-270 Corridor, a well-known biotech hub.
One of the deals Scheer Partners uncovered within the last two to three months. The company has known for a few months this fund would be closing, he explains, and has been aggressively seeking out new opportunities in anticipation. The other two pending transactions come from Scheer Partners' own $250 million biotech pipeline.
The company's expertise, contact and experience in this space will all play an important role as the fund invests its capital, Scheer adds. The firm began focusing on the space in earnest about 10 years ago, concentrating not only on the 1-270 cluster but also activity in Baltimore and certain Northern Virginia enclaves.
All together the company has completed more than 500 life science projects, totaling more 6.2 million sf of leasing, acquisition, design, and construction projects, as well as operating incubator and laboratory facilities.
Now is a good time to start expanding the biotech footprint in the DC area, he explains. "There has been an oversupply by historical standards of product. That supply is beginning to diminish so we are expecting lower vacancy rates and increased rentals over a one-to-three year time frame." There is also the likelihood that federal funding will increasing in the coming years, he adds. "The National Institutes of Health has been flat funding--at rates below the inflation level--for the last several years." JBG did not return calls in time for deadline.
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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.
