Taconic Partners as well as Nuveen Real Estate closed a $ 260 million fund to acquire real estate in the New York suburbs, hoping to build a portfolio worth more than $ 1 billion, the Commercial Observer learned.
The foundation named New York City Estate Fund II, plans to target “added value” opportunities in five boroughs and parts of New Jersey, said Chris Balestra, co-president and chief investment officer of Taconic Partners. Nuveen and Taconic are not limited to any asset classes and focus on offices, life sciences and last mile distribution sites.
“We can profit from any asset class,” Balestra said. “If an industrial deal appears and it makes sense to conclude it, [we’ll do it]… “
Balestra was unable to say which companies were involved in the fundraising, only that he included several European pension funds.
Joint partners began fundraising in 2018 and closed the foundation’s first project the following year, a former car dealership at 125 West End Avenue the couple received $ 230 million with plans to turn it into a center for life sciences…
Nuveen and Taconic planned to close the rest of the fund in 2020, but the coronavirus pandemic has left investors wary of entering the New York market.
“It was a tough time for promotion,” Nadir Settles– said the head of the Nuveen regional office in New York. “Many investment commitments continued to raise concerns about New York.”
The couple had to lower their target for the fund, which was originally $ 500 million, but still managed to close it this month. Settles said the joint venture stronghold in the city growing life sciences market – and $ 600 million capitalization for 125 West End they landed in March – helped ease investor concerns about the New York market, and any amount raised during the pandemic is a good thing.
“There wasn’t a lot of fundraising in the days of COVID,” Settles said. “But we still managed to attract the lion’s share of the capital. This is a huge victory. “
The pair are now actively looking for opportunities around the city to place the rest of the fund’s capital and are hoping to close it with their next acquisition by the end of the year.
While foreign investors have doubts about New York’s future, both Balestra and Settles said their companies never considered giving up fundraising.
“When you’ve been to New York, you know its resilience,” Settles said. “And when you have two groups that focus on New York in good times and bad… they will find opportunities; otherwise they have no job. “
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