CHEVY CHASE, MD. — Federal Capital Partners (FCP) has closed on the $592.2 million FCP Realty Fund II. The fund targets multifamily, office, retail and industrial properties throughout the Mid-Atlantic region.
“FCP is extremely pleased with the response to the Fund II offering, which was over-subscribed in a challenging economic and fund raising climate,” says Esko Korhonen, managing partner of Chevy Chase-based FCP.
Fund II has already secured 14 investments totaling $103 million of fund equity, representing value of $367 million. When fully deployed, the fund is expected to generate approximately $1.5 billion of total investments.
Most recently, the fund acquired the 234-unit Ager Road Station, an apartment complex located in Hyattsville, Maryland, for $14.75 million. The property is 98 percent leased.
“We are excited at the prospects of our fund given the opportunities created by continued disruptions in the capital markets and positive growth outlook for markets in the Mid-Atlantic region,” Korhorn says. “FCP’s active investment pace is, in large part, due to its ability to move quickly in markets where it has deep knowledge and established relationships.”
Since 1999, the company has invested or financed more than $3 billion in assets, and manages $769.2 million of discretionary capital.
“We have a proven track record of closing complex transactions, in particular those that have a need for redevelopment and repositioning to fully achieve value,” Korhorn adds. “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.”
— Savannah Duncan