Gentry Mills Capital, an Irving, Texas-based real estate investment firm and sponsor of non-traded direct investment offerings, is preparing to close its Gentry Mills AC Opportunity Fund, LP after raising $50 million in capital. Also known as the “After COVID” fund, the monies will be used to acquire single assets in solid and stable markets with sound fundamentals.
The fund was initially launched in late summer, 2020 to take advantage of potential commercial real estate opportunities generated by the COVID-19 pandemic. The initial goal was to acquire anticipated pandemic-generated distressed assets from property owners.
But as events unfolded, Gentry Mills Capital revised the fund’s purpose, focusing on buying assets from owners that could no longer maintain them. The fund’s goal is a mid-teen return during the three- to five-year hold period.
“The COVID-19 pandemic did not generate the distressed asset opportunities that the entire real estate community expected,” said William P. Glass, president of Gentry Mills Capital. “There was an enormous amount of capital raised in 2020 in anticipation of widespread distress throughout the real estate industry, and many hospitality property owners were bolstered by resources such as congressional stimulus package funding and relaxed banking agreements, preventing distressed properties from becoming available. This put extreme pressure on investment firms to deploy the capital they had raised.”
Glass said the fund will avoid overheated markets and continue to be cautious in its acquisitions underwriting, adding: “we feel there is tremendous value in specific markets right now, and we are making those opportunities available to the broker-dealer and RIA communities.”
Gentry Mills Capital, LLC is a Dallas-based, real estate investment firm whose purpose is to seek out, package and provide high quality commercial real estate investment opportunities through the broker-dealer community. Since 2006, Gentry Mills has raised more than $250 million in capital for approximately $1 billion in assets purchased.