In common with DivcoWest's four prior funds, Fund V will invest mainly in office and R&D properties in select innovation markets that are characterized by strong education, employment, amenities and transportation systems with high barriers to entry. These markets include the San Francisco Bay Area; Boston; Southern California; Washington, DC; New York City; Seattle; and Austin, TX. DivcoWest engaged Greenhill & Co. as the global placement agent, and Goodwin Procter LLP represented DivcoWest as fund counsel in the establishment of Fund V.

SAN FRANCISCO—Divco West Real Estate Services said Wednesday it had closed on its fifth commingled value-add investment fund with commitments exceeding the $1.5-billion target. At $1.585 billion, DivcoWest Fund V is the investment firm's biggest to date, and drew primarily on existing investors. The firm began marketing Fund V in 2015.

“We are truly grateful to our investors who have entrusted us with their partnership in this next venture,” says Stuart Shiff, DivcoWest's founder and CEO. “We are pleased to have 25% of Fund V already designated to what we believe is an attractive group of investments. We look forward to continuing the creation and management of a dynamic and disciplined portfolio of real estate and real estate related investments for our investors.”

Among the investments already made through Fund V was the April acquisition of 101 S. Ellsworth Ave., a fully leased, six-story office property in the Silicon Valley community of San Mateo, CA. Published reports say the property traded for $73.5 million, or about $840 per square foot, and that DivcoWest will be able to take advantage of lease rollovers within the next few years.

Fund V's investors represent a diverse group of more than 40 institutional investors, including domestic and foreign public and private pension funds, financial institutions, endowments and high net worth individuals. Its predecessor closed in 2014 with $976 million of total commitments. To date, it has returned over 130% of invested capital.

In common with DivcoWest's four prior funds, Fund V will invest mainly in office and R&D properties in select innovation markets that are characterized by strong education, employment, amenities and transportation systems with high barriers to entry. These markets include the San Francisco Bay Area; Boston; Southern California; Washington, DC; New York City; Seattle; and Austin, TX. DivcoWest engaged Greenhill & Co. as the global placement agent, and Goodwin Procter LLP represented DivcoWest as fund counsel in the establishment of Fund V.