Pembrook Capital Management has raised $100 million for the first close of its third commercial real estate debt fund, PCI Investors Fund III, Real Estate Capital has learned.
The fund is targeting $300 million and, like its predecessor funds, will shoot for returns in the low-teens, sources said. Capital commitments are being sought from pension funds and banks. Pembrook declined to comment.
The commercial real estate investment manager announced the $154 million final closing of its previous fund, PCI Investors Fund II, in April of 2013. The $119 million first vehicle had its final close in 2007.
Previous investments have focused on short-term financing throughout the capital structure, including first mortgages, mezzanine and bridge loans. The firm targets development and transitional multifamily, retail, office, and industrial properties with total capitalizations in the $10-50 million range.
In November Pembrook closed a $30.4 million first mortgage bridge loan and preferred equity position for the acquisition and renovation of the Madison Oaks Apartments complex in Palm Harbor, Florida. And in October the firm provided a $32 million first mortgage loan for the acquisition and renovation of a student housing complex in Los Angeles, near the University of Southern California (USC) campus.
Founded in 2006 by Stuart Boesky, Pembrook has originated or participated in 85 investments totaling over $950 million.