DivcoWest has held a first close on its third real estate fund, according to documents filed with the Securities and Exchange Commission.
The San Francisco-based private equity real estate firm raised $155 million in equity through July for DivcoWest Fund III, a value-added vehicle targeting $400 million in commitments. Sources familiar with the situation told PERE that the fund was launched last summer and is expected to close by the end of the year.
DivcoWest Fund III is looking to invest in well-located office and research and development properties serving technology-oriented tenants across the US. The firm is targeting net returns of 10 percent to 13 percent. DivcoWest officials declined to comment.
To date, DivcoWest has acquired more than 22 million square feet of commercial real estate space throughout the US and has invested more than $1.3 billion in equity.