Washington, D.C.-based Penzance, a real estate investment firm, has closed its inaugural real estate private equity fund at $255 million. Penzance DC Real Estate Fund LP’s backers include institutional investors, endowments, foundations and family offices. No placement agent was used.
WASHINGTON, Oct. 17, 2018 /PRNewswire/ — Penzance, an owner, operator and developer in the Washington, DC metropolitan region, for more than two decades, has closed its first real estate private equity fund, the Penzance DC Real Estate Fund LP (Fund I), with total equity commitments of $255 million. The Fund’s investor base includes a diverse mix of institutional investors, including endowments, foundations, and family offices. No placement agent was used in the launch of the Fund.
The discretionary Fund will target value-add investments in residential and commercial properties and mixed-use development throughout the Washington, DC metropolitan region. Penzance expects to target a portfolio size of $800 Million to $1 Billion of total capitalization for the Fund. The Fund can invest directly or as a general partner in joint ventures with other institutional partners, which should provide increased diversification and buying power.
“We are honored to partner with such distinguished investors and are grateful for their confidence in our team”, said Julia Springer, Penzance co-founder. “We intend to continue investing with many of our long-standing partners, to whom we owe so much of our success, by utilizing the Fund’s ability to make general partner investments. The Fund builds on our performance over 22-years of adding value through local expertise and intensive operations in the Washington DC region.”
To date the Fund has closed on two investments and committed nearly 20 percent of fund equity:
1680 Wisconsin Avenue, a three-story, 17,398 square foot office building situated in the highly desirable Georgetown submarket of Washington, D.C. The property is currently 100-percent leased to four tenants.
The Highlands, a public/private, trophy mixed-use development located in the Rosslyn submarket of Arlington, Virginia breaking ground this month, to feature three high-rise towers totaling 1.2 million square feet with 780 rental units, 104 condominium units and 40,000 square feet of retail. Fund I acquired an interest in the property in August 2018.
Penzance will continue to invest in office and residential assets with a focus on developing or repositioning projects designed to enhance local neighborhoods with attractive environments for area residents and workforce to live, work and play.
Penzance is a leading Washington, D.C.-based fully-integrated real estate investment company with a proven track record. Penzance has a history of utilizing creative strategies to maximize value and drive NOI growth. The Company currently manages approximately 1.5 million square feet of office and has ownership interests in approximately 1,900 residential units.