Northstar Commercial Partners and Integrity Trust of Colorado Springs announced the launch of their Northstar Integrity Growth Fund, a $125 million private real estate investment trust focused mainly on value-add properties.
The fund is structured as a REIT under a 506(c) designation and will focus on 75 percent value-add and 25 percent cash-flowing commercial real estate properties located primarily in Western growth markets, including Colorado, Utah, Texas, Arizona, New Mexico, and California. The fund plans to target commercial real estate assets with at least a 30 percent discount to replacement cost.
“We like the idea of launching the fund at this time, because the strategy of buying hard assets at a deep discount to replacement cost has proven itself through several distinct market environments,” said Eric Davis, president of Integrity Trust. “We believe real estate investing can be a safe haven during slower economies. Having ready access to capital during slow economies with a fund structure will allow us to take advantage of inefficiencies in the market; we are excited about the prospect of buying undervalued assets and turning them profitable.”
Founded in 2003, Integrity Trust is a Colorado Springs-based firm that offers wealth management, financial advising, and alternative investment opportunities for more than 2,000 clients across the nation.
Northstar Commercial Partners specializes in buying vacant, distressed, value-add, and income generating commercial real estate assets throughout the United States. Founded in 2000, the firm has reportedly closed 139 deals and currently has 47 retail, office, industrial/warehouse, medical, senior care, data centers, and day care facilities in 15 states under its investment, development, and management. The company said that its portfolio exceeds more than $1.35 billion of market value.