The JBG Companies has closed its seventh real estate fund on $576.5 million of commitments.
JBG investment Fund VII has invested just $77.5 million to date, leaving it 86 percent uninvested, the firm said in a statement. JBG closed its predecessor fund, Fund VI, on $600 million in September 2007.
The latest vehicle will target debt and equity investments, across all property types, in Washington DC. Michael Glosserman, managing member of JBG, said the firm would target the “dislocation in the current environment,” adding: “We're seeing compelling opportunities today … to create significant value in the coming years”.
JBG closed nine investments in 2009 investing $155 million in equity. In December, JBG paid $71m for One Bethesda Center, a 167,000-square-foot office and retail property from Brookfield Properties assuming a $53 million mortgage. The property was originally bought by Brookfield in 2006 for $66.4 million.
The investment period for JBG Fund VII is expected to run through to 2012. Investors include university endowments, charitable foundations, wealth managers and high-net-worth individuals, the firm added.