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DivcoWest holds $1.1 billion first close

The San Francisco-based firm has held a first close for its fifth office fund.

DivcoWest has held a $1.1 billion close for its latest office fund, according to a Monday filing with the US Securities and Exchange Commission (SEC).

A spokesperson for the San Francisco-based firm declined to comment on DivcoWest Fund V. One investor in the value-added vehicle was the Texas Municipal Retirement System (TMRS), which allocated $75 million, according to PERE Research & Analytics. Divco plans to invest in office and research and design properties across the United States with a focus on the western US, according to TMRS documents.

The firm closed the fund’s predecessor vehicle in April 2014 at more than $200 million above its original target, PERE reported at the time. DivcoWest Fund IV brought in $976 million in equity commitments, hitting its increased hard cap after just nine months on the fundraising trail. Fund IV, which had a target of $750 million and an initial hard cap of $888 million, held a first close in August 2013 on $125 million. At that time, Divco decided to raise its hard cap to $976 million due to strong demand.

Greenhill & Co. is the placement agent for the fund, according to the SEC filing.

Divco’s most recent publicly-available transaction was the April purchase of Plaza San Ramon, a two-building office complex in San Ramon, California for $47.6 million, according to real estate data provider Real Capital Analytics. The firm bought the property, at 2010 Crow Canyon Place, from a local developer.