Embarcadero holds first close on Fund IV

The Belmont, California-based investment firm has raised $144.13 million for its Embarcadero Capital Investors IV, which is seeking up to $400 million to invest in West Coast office properties.

Embarcadero Capital Partners has held a first close for its fourth value-added real estate fund. According to documents from the US Securities and Exchange Commission, the Belmont, California-based real estate investment and management firm has raised $144.13 million in equity on behalf of Embarcadero Capital Investors IV. 

Sources familiar with the matter told PERE that Fund IV is looking to raise somewhere between $300 million to $400 million in commitments. Launched in mid-2012, the commingled fund is expected to close sometime during the fourth quarter. Representatives from Embarcadero declined to comment.

Through Fund IV, Embarcadero is looking to invest in office properties across the West Coast of the US. The firm hopes to generate net returns of 13 percent to 15 percent although, on a deal-by-deal basis, it could net returns as high as 18 percent. Currently, Embarcadero has not made any investments on behalf of the vehicle, but it has a pipeline of deals it is said to be eyeing. 

In March, it was reported that Embarcadero was in the process of buying 601 California Street, a 250,586-square-foot trophy office tower in San Francisco’s financial district from Lincoln Property for a rumored $113 million. One source confirmed the acquisition was not being made on behalf of a fund, but rather through a joint venture partnership with an undisclosed private investor.

Founded by Eric Yopes and John Hamilton, Embarcadero has raised more than $600 million of equity on behalf of its three prior closed-ended funds, according to the firm’s website. The firm’s previous investment vehicle, Fund III, closed on $365 million in equity in 2007 and is fully invested.