Hawkeye Partners has committed $200 million to Coretrust Capital Properties as the seed investor in the new manager’s first real estate fund, Coretrust Value Fund (CVF) I. The commitment is Hawkeye’s second investment on behalf of its latest fund, Scout Fund II.
Coretrust was founded last year by Thomas Ricci, Randall Scott and John Sischo, formerly the senior management at Thomas Properties Group, and Oak Pass Capital founder and president Charles Toppino. Toppino is no longer involved with the firm.
To date, the Los Angeles-based firm has invested in opportunistic, value-add, core-plus and core strategies in office and mixed-use real estate through co-investments and a separate account vehicle. Through CVF I, Coretrust plans to acquire, reposition, re-tenant or redevelop office buildings located in major markets on the West Coast, Southwest and Mid-Atlantic regions of the US.
“We are very excited about our partnership with Coretrust, said Claudia Faust, managing partner at Hawkeye. “Coretrust’s senior team is one of the most creative and experienced teams in the office sector. They are uniquely positioned to execute in the value add space and have a long and consistent track record of delivering excellent returns to their investors.”
Added Coretrust managing principal John Sischo: “We couldn’t be more pleased with our partnership with Hawkeye. It is the industry leader in launching new investment management firms and will provide us with the support and guidance needed to leverage our two decades of experience and expertise into a market-leading investment platform.”
Hawkeye launched its Scout Fund series, which invests in new and emerging managers, in 2006. With Scout Fund II, the firm raised $533 million for the fund and $100 million through a sidecar vehicle in March 2014. Limited partners in the vehicle included Maryland State Retirement and Pension System, North Carolina Retirement System, Pennsylvania State Employees’ Retirement System and the Teacher Retirement System of Texas.
In January, Hawkeye announced a $175 million commitment to seed Boston-based fund manager Blue Moon’s debut vehicle, Blue Moon Senior Housing (BMSH) I. Through the vehicle, Blue Moon will acquire, reposition and develop senior housing products throughout the US. Hawkeye is expected to make one additional investment through Scout Fund II.