Rubenstein Partners closed four deals in the fourth quarter, marking the first new investment by Rubenstein Properties Fund LP in nearly four years. The four transactions represent an initial equity investment of about $70 million, with anticipated follow-on equity investments of $30 million in these deals. Rubenstein Partners is a Philadelphia, Pa.-based private equity firm providing leading real estate investment management and advisory services.
In a sign that the commercial real estate investment market is beginning to thaw, Rubenstein Partners, a private equity firm providing leading real estate investment management and advisory services in office markets throughout the Eastern United States (“Rubenstein”), today announced the closing of four separate transactions in the fourth quarter of 2010 by Rubenstein Properties Fund, L.P. (“Fund”), the Fund’s first new investments in nearly four years.
The four transactions located in Charlotte, NC, Whippany, NJ, Alexandria, VA and Cleveland, OH represent an initial equity investment of approximately $70,000,000, with anticipated follow-on equity investments in these deals of $30,000,000. After patiently scouring for opportunities over the past few years, these deals reflect Rubenstein’s ability to seize new opportunities in what had been a dislocated office investment market.
Each investment, while unique and distinct, is consistent with the Fund’s focus on value-added office investments. Following the execution of these four year-end deals, the Fund is approximately 70% committed and has approximately $150,000,000 of equity available for future investments.
Rubenstein anticipates this year-end flurry of investment activity to be a harbinger of increased deal flow as distressed situations and others begin to make their way into a market that was overheated in 2006-2007, largely frozen in 2009 and anemic in 2010. “We have worked very hard sourcing, underwriting and negotiating potential transactions for the better part of the last four years, but have refrained from buying. As the result of the firm’s discipline, the Fund is well positioned to take advantage of opportunities that we believe will be coming to the market in 2011 and beyond,” said David Rubenstein, senior managing principal of Rubenstein Partners, the Fund manager.
The following is a summary of the four value-added transaction executed in December 2010:
Charlotte, North Carolina – The Fund, in partnership with local operator, Trinity Capital Advisors, purchased the debt and equity interest in NASCAR Plaza, a state of the art 390,000 square foot Class A, newly developed LEED Silver certified building located in the central business district of Charlotte. The property was acquired as part of a complex, multi-party note sale. NASCAR Plaza is currently 40% occupied and Rubenstein intends to reintroduce the building to the market and aggressively lease-up the remaining vacancy.
Whippany, New Jersey – The Fund, in collaboration with local partner, Vision Equities, closed on a former corporate campus of Lucent-Alcatel located in the heart of Morris County. The campus currently contains 15 office, research/lab and support buildings totaling 1,354,751 square feet, situated on 194 acres. The property has two primary office buildings totaling 525,000 square feet, which are prime candidates for renovation and re-use, 500,000 square feet of existing buildings that can be released as R&D/lab space and 80 acres of developable land which has received considerable interest from developers and tenants seeking to participate in the future development of office, retail, multi-family and senior living uses.
Alexandria, Virginia – The Fund closed on the acquisition of 2900 Eisenhower Avenue a 60,000 square foot office building which is located in the Alexandria sub-market of the Washington, DC metro area with frontage on Interstate 495. The property was purchased from a corporate user and is currently 25% occupied. Rubenstein intends to renovate the building, lease up the vacancy and take advantage of a rapidly tightening sub-market.
Cleveland, Ohio – The Fund originated a $15,000,000 mezzanine loan in the Flats East Bank Development, a mixed-use project which shall contain an 18 story LEED certified office building, a 150 room A-Loft hotel, retail space, a parking garage and 14 acres of park land, all at the mouth of the Cuyahoga River. The debt investment involved coordination with myriad other parties and was enigmatic of Rubenstein’s ability to navigate complex structures and capitalize on a quick moving opportunity.
“The closing of these transactions represents the continued successful execution of the Fund’s ‘value-added’ strategy throughout a broad geographic area within the Fund’s target markets, and we are enthusiastic about the rapidly expanding prospects for future investments,” Rubenstein added.
About Rubenstein Partners
Rubenstein Partners, founded in September 2005, is a private real estate investment management and advisory firm with operations throughout the Eastern United States. The firm is lead by David Rubenstein and a select group of former senior real estate executives from The Rubenstein Company, L.P., and is focused on directing and managing value-added office real estate investments, primarily in the Eastern Time Zone of the United States (www.rubensteinpartners.com).
SOURCE Rubenstein Partners