Davis closes second opportunity fund

Through its $414m Davis Investment Ventures Fund II the Boston-based real estate operator will target debt and equity positions in all property types across the US. In addition, it will purchase distressed assets and stabilise them through its operating platform.

Boston-based The Davis Companies has recently completed fundraising for its second discretionary US opportunistic investment vehicle. 

According to sources, Davis Investment Ventures Fund II has closed on approximately $414 million in equity commitments. Representatives from Davis declined to comment.

Through the commingled vehicle, the real estate development firm will invest in debt and equity positions in all property types across the US, with a particular focus on the Boston-to-DC corridor along the Northeast. In addition, through its capacity as an operator, Davis will also make direct investments in distressed assets through Fund II and stabilise the properties through its operating platform. 

Launched in November 2011, Fund II held a first close in April on roughly $230 million. The vehicle is targeting returns in the mid- to high-teens for its investors, which are both institutional and high net worth individuals. The minimum investment commitment was $1 million. 

Already, the firm is investing on behalf of Fund II. Recently, Davis acquired a loan on a Boston office property in the city’s seaport district and currently is in the process of renovating the asset. 

Fund I closed on approximately $230 million in May 2010. It is now close to being fully invested. 

Founded in 1976, The Davis Companies has invested in approximately 120 properties representing more than $2 billion in gross asset value, and has acquired approximately $450 million of commercial loans and real estate securities. The firm currently owns and manages approximately 8 million square feet of real estate.