Federal Capital Partners (FCP) has closed FCP Realty Fund III, L.P. (Fund III), a $512.1 million fund targeting multifamily, commercial properties and structured opportunities throughout the Eastern US.
Fund III has closed 20 investments committing $332.4 million of fund equity and representing total value of $1.1 billion; and when fully invested is expected to accommodate approximately $1.7 billion of total investments.
About 15 percent of the fund will be allocated to mezzanine loans, Steve Walsh, senior vice president of the firm’s Capital Markets group, told Real Estate Capital.
In one recent example, in May FCP provided a $20.6 million mezzanine loan for the development of the 197-unit community at 1255 22nd Street, NW in Washington, DC.
“Since raising our initial fund in 2008, FCP has closed more than 100 transactions, representing a range of investments from structured loans and equity investments to the purchase of a public company, totaling an aggregate value in excess of $4 billion,” noted said Esko Korhonen, FCP managing partner, in a statement.
He added: “FCP’s active investment pace is, in large part, due to our ability to move quickly in markets where we have deep knowledge and established relationships. We have a proven track record closing complex transactions, in particular those that have a need for redevelopment and repositioning to fully achieve value. Our access to fully discretionary capital also allows for the flexibility to invest throughout the capital stack as equity, preferred equity, mezzanine debt or any combination of the above.”
The a privately held real estate investment company that has invested in or financed more than $5 billion in assets since its founding in 1999.