LOS ANGELES—Tryperion Partners has closed its Tryperion RE Fund II, a $50 million investment vehicle. This is the firm's second fund in the last two years, and is expected to hit the $75 million mark in subsequent closings. The fund is focused on sub-institutional and value-add opportunities in the Midwest and West markets.

“Our focus is on value-add deals because they offer the most compelling risk-adjusted returns,” Eliot Bencuya, partner at Tryperion, tells GlobeSt.com. “Buying and stabilizing properties at higher cap rates, coupled with the availability of attractive financing, results in compelling cash-on-cash yields for our investors.  And although Tryperion may certainly execute deals on a direct basis, we value joint ventures with best-in-class operators that have experience in a specific market and property type.  These joint-venture partner relationships are a critical component to the firm's success.”

The fund's individual acquisitions will range in price from $10 million to $45 million. “The markets we target generally have a diversified economy, with one or more anchor industry,” says Bencuya. In the past, Tryperion has found its ideal properties in submarkets like St. Louis, Minneapolis, Phoenix and San Antonio, and according to Bencuya, the firm is continuing “to search the West and Midwest for similar profiles.” 

Tryperion sought to raise the $50 million from the start, and was able to do so quickly and without challenges. “The fundraising process was smooth,” says Bencuya. “There's clearly healthy demand for real estate investments offering current cash flow.” Although there is a strong demand, Tryperion likes to maintain a smaller fund size. “It allows us to be patient, nimble, and more likely to capitalize on potential inefficiencies,” Bencuya explains.