The Belmont, California-based private equity real estate firm is trying to raise $300 million for Embarcadero Capital Investors V, which has a net internal rate of return target in the mid-teens.
The firm plans to use the same strategy as it had with its previous funds, acquiring office and research-and-development prop¬erties on the US’ West Coast that are underperforming or in need of renovation, redevelopment or repositioning. Embarcadero primarily focuses on Silicon Valley and the San Francisco Bay Area, as well as Los Angeles and Seattle.
The firm closed its fourth fund in April 2014 at $155 million. Its investor base for the fund series includes endow¬ments, foundations, family offices and fund-of-funds opera¬tors. One repeat investor is the University of Michigan’s endowment, which allocated $15 million to Embarcadero’s third fund and $20 million to the firm’s second fund, according to PERE Research & Analytics.
John Hamilton, formerly Cornerstone Properties’ chief development officer, and Eric Yopes, Shorenstein Company’s former managing director of investments, founded Embarcadero in 2003. In total, the firm raised nearly $855 million for the first four funds, according to the company’s website.
In October, the firm bought Stoneridge Tower, a five-story office building in Pleasanton, California, for $36 million, according to data site Real Capital Analytics. The firm currently owns 24 properties in total, according to its website.
Representatives from Embarcadero declined to comment for this story.