LOS ANGELES-A new joint venture that seeks to cultivate the next generation of real estate investment fund managers has been formed. The Canyon Catalyst Fund has teamed with Rubicon Point Partners, and they have already closed on their first property.
The new JV will focus on pursuing Northern California office, R&D and data center properties ranging from $60 million to $100 million. Former U.S. Dept. of the Treasury official Ani Vartanian-Boladian is the managing partner of Rubicon.
Rubicon Point Partners represents the first partnership for the Canyon Catalyst Fund, a joint venture between Canyon Capital Realty Advisors and the California Public Employees' Retirement System (CalPERS). The $200 million fund, which will facilitate $400 million of investment, is designed to identify early stage real estate managers with strong potential for success, access to unique investment opportunities, and cultivate the next generation of real estate investment managers. Canyon provides direct oversight of investment sourcing, selection and deal structuring, and oversees asset management through to final realization.
“It is critically important to cultivate the next generation of fund managers who will be deploying capital in California's urban real estate markets,” said Bobby Turner, chairman and CEO of Canyon Capital Realty Advisors, in a prepared statement. “The Canyon Catalyst Fund is a unique program, and we at Canyon appreciate the opportunity to share our expertise with firms like Rubicon Point Partners to help develop a talented group of emerging fund managers.”
Maria Stamolis, managing director at Canyon Capital Realty Advisors, praised her new partner. “Ani's track record of success in the financial industry and her depth of expertise in the San Francisco Bay Area market make her an excellent first partner for the Canyon Catalyst Fund. We look forward to providing support for Rubicon Point Partners and empowering Ani's team to grow their operating platform and capabilities within the Northern California market.”
The first acquisition is a two-story office building with ground-floor retail in Mountain View. The 29,000-square-foot building has 1,500 square feet of retail. The largest tenant in the building, Quixey, occupies the ground floor office suite next to the retail space. The building's second floor will be updated into open, creative and interactive office space for occupancy by a new tenant next year.
Built in 1949, the office property was originally constructed as a one-story retail building, and underwent a major renovation in 2000 that added a second floor of office space as well as the storefront retail suite. The property went through another renovation last year to convert the basement and ground floor space to office space.
“We are pleased to have the backing of Canyon through their innovative new Catalyst fund, and to acquire a transit-oriented office property that we believe has tremendous upside potential,” said Vartanian-Boladian. “Mountain View is one of Silicon Valley's most active submarkets positioned for incredible growth in the coming years. We look forward to delivering a comprehensive repositioning that will cater to the start-ups, tech firms and creative tenants that are now focused on Mountain View office space.”
Executives from the funds were not immediately available for further comment.
As previously reported by GlobeSt.com, Canyon has also established the Canyon Multifamily Impact Fund, which seeks to serve submarkets with high demand for affordable workforce housing.
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