Five Mile Capital is on the fundraising trail, looking to raise a $750 million fund.
The Stamford, Connecticut-based investment management firm has stayed out of fundraising for the last four years but is targeting at least $750 million for Five Mile Capital Partners III, according to media reports. This vehicle has a 15 percent return target through property equity and debt strategies. Five Mile plans to invest across the country, focusing on offices and hotels with up to $100 million of equity for an individual deal.
Investors in the $1.5 billion Five Mile Capital Partners II, which closed in 2007, included Teacher Retirement System of Texas, which committed $200 million, and the New Jersey Division of Investment (NJDOI), which allocated $100 million, according to PERE Research & Analytics.
NDJOI later sold its stake, worth $56 million as of June 30, 2013 according to the pension plan’s materials. It was part of wider sale by the US pension of various real estate fund stakes.
Five Mile Capital owns buildings nationwide, in markets ranging from Cleveland to New York City. Earlier this month, the firm sold the 235,000 square foot retail portion of the New York Times’ building in Manhattan that it co-owns to Kushner Companies for $296 million, according to Real Capital Analytics, the real estate investment research group.