Real estate investment company Penzance 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 investor base includes a mix of institutional investors, including endowments, foundations, and family offices.
Penzance expects to target a portfolio size of $800 million to $1 billion of total capitalization for the fund. The discretionary fund plans to target value-add investments in residential and commercial properties and mixed-use development throughout the Washington, DC metropolitan region, and can invest directly or as a general partner in joint ventures with other institutional partners.
“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.”
To date, the Penzance DC Real Estate Fund LP has closed on two investments and committed nearly 20 percent of fund equity. The properties include 1680 Wisconsin Avenue in Washington, D.C. and The Highlands in Arlington, Virginia.
1680 Wisconsin is a three-story, 17,398 square foot office building located in the Georgetown submarket that is currently 100-percent leased to four tenants.
The Highlands, a mixed-use development located in the Rosslyn submarket, is breaking ground this month and will 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.
Penzance said that it “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.”
No placement agent was used in the launch of the fund.
Penzance is based in Washington, D.C. and currently manages approximately 1.5 million square feet of office and has ownership interests in approximately 1,900 residential units.