SAN FRANCISCO-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement, but GlobeSt.com has learned that locally based Farallon Capital Management LLC has completed fundraising for Farallon Real Estate Partners, a US real estate investment pool with commitments of $375 million. FREP is targeting income-producing office, multifamily, retail, and industrial properties and will seek to take advantage of Farallon's unique insights, proprietary deal flow, capital market relationships and global reach, according to the firm.
Investors in FREP include endowments, foundations, family offices and corporate pension plans.
Andrew Spokes, Farallon's managing partner, explains that "Farallon has been investing in real estate for over 20 years." And over that period, he says, "we have allocated well over $3.2 billion of capital to more than 130 transactions in income-producing properties."
According to Spokes, "Raising dedicated commitments allows us to pursue an investment program tailored to this strategy, fulfilling a targeted investor mandate. The current commercial real estate market plays to the strengths of our US real estate team and we are looking forward to investing these new commitments for our partners."
Farallon's US Real Estate Team is co-headed by Rocky Fried, managing member at Farallon and Dan Hirsch, managing member at Farallon, who are supported by a team of eight investment professionals. Both Fried and Hirsch have spent over 10 years at Farallon.
Over the next three years, according to Fried, "we see the real estate industry continuing to restructure with capital in shorter supply for off-the-run assets and situations."
Hirsch adds that "consistent with our focus on fundamentally sound yet undervalued assets, we have recently made several investments in cities with significant job growth and higher barriers to entry, where we are able to purchase properties at a discount to replacement cost."
Some of those investments, Hirsch adds, are "burdened with complicated and broken balance sheets."
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
