PHILADELPHIA, PA-Rubenstein Partners, an investment management fund that focuses on value-add acquisitions along the East Coast, is seeking to raise up to $750M for its latest investment fund.
So far, Rubenstein Properties Fund II has raised $215 million, according to a regulatory filing.
The fund is being created to invest in office properties located from Boston to Florida, and will include some deals that are joint ventures with local operators. Its first investment was a joint venture: purchase of Trammel Crow Co.'s 50% stake in the 500,000-square-foot CenterPoint office-flex complex in Waltham, MA, for $68M. Saracen Properties, a suburban Boston developer, owns the other 50%.
Saracen is in the midst of a $52 million repositioning of CenterPoint, currently only 40% leased. It bought the property with Trammel in 2007 after defense contractor Raytheon moved out.
Rubenstein's value-add strategies include developing properties, buying under-performing properties and redeveloping or renovating them to boost occupancies, along with buying debt in order to ultimately take title to the assets.
With its first investment fund, which raised $475 million, it undertook a joint venture with Trinity Capital Partners of Charlotte, NC that purchased the note against Nascar Plaza in Charlotte, for example. It foreclosed on the 390,000-square-foot office building in 2010, boosted tenancy from 40% to 88% and last November sold it for $100 million.
Rubenstein was founded by the father-son team of Mark and David Rubenstein in 2005, a year after they sold a 3.5 million-square-foot real estate portfolio to Brandywine Realty Trust for roughly $600M.
They expanded into fund management via an alliance with Independence Capital Partners, a group of investment funds sponsored by Dean Adler and Ira Lubert of Lubert-Adler Partners, also Philadelphia-based.
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