"Lubert Adler is the capital provider and Lane Co. will serve as the operating platform," Eric Hade, general counsel and VP of capital markets with Lubert-Adler, tells GlobeSt.com about the venture. "Principals of this company have been investing together since the '80s." Most recently, Lubert-Adler invested in several of Lane Co.'s communities in Atlantic Station, a live/work/play redevelopment in Midtown Atlanta.

"There will be a significant number of opportunities over the course of the next two years that will require quick action and this structure gives us the ability to capitalize on those," says Hade. The $250-million venture is an initial amount within the fund, he reveals. "We anticipate it will grow larger."

The fund will target areas in the Southeast, including Central and South Florida, Georgia and Virginia, as well as markets in the Southwest, mostly in Dallas, Houston and Austin, TX. Distressed properties and assets built since 1990 and held by sellers experiencing capital distress will be considered, says Hade.

The partnership will also look to capitalize on short-term debt maturities and will also look at stabilized assets that need capital restructuring or transition assets, such as condo conversions. Transit-oriented, urban and waterfront development will be sought, as well as markets with high barriers to entry, Hade reports.