Redcar Closes on Second Creative Office Fund with $418M in Equity Commitments

Redcar Fund Management has closed on Redcar Fund II with $418 million in equity commitments. The fund acquires and converts underperforming industrial properties into creative office assets.

In its debut Fund 1, the company acquired 15 assets which will total 1.4 million square feet when they are redeveloped. All of the properties in Fund I are located in the LA submarkets of Culver City, Santa Monica, Silver Lake, Frogtown and Chinatown — which are being driven by the expansion of content creation studios, gaming, music, fashion, and media companies such as Amazon Studios, HBO, and Apple.

While Redcar Fund I focused exclusively on Los Angeles, Fund II includes a co-investment sidecar that will help capitalize the firm’s expansion into Austin, TX, which exhibits similar tenant demand for its specialized industrial redevelopment strategy.  Fund II currently owns a portfolio of 12 assets across Los Angeles and in Austin’s St. Elmo and South Austin neighborhoods.  As with Fund I, investors in Fund II and the co-investment sidecar include endowments, asset managers, private pensions, public pensions, family offices, insurance companies, financial institutions, foundations, wealth managers, and high net worth individuals in North America, the Middle East and Europe.

Fund II exceeded the size of Redcar’s $412 million Fund I amidst a challenging fundraising environment, especially for U.S. office managers, according to Co-Managing Partner Christopher Chee.

Evercore Group LLC acted as global capital advisor and Kirkland & Ellis LLP acted as legal advisor for Redcar Fund II and the co-investment vehicle.