MacFarlane closes on $1bn, eyes more

The urban investment specialist is already speaking with investors about a larger follow-on fund.

MacFarlane Partners, the San Francisco-based investor in urban and single-family housing assets, has reached a final close on $1 billion for its MacFarlane Urban Real Estate Fund II, a US urban diversified fund. C.P. Eaton Partners served as placement agent.

The vehicle, raised from 15 limited partners including domestic and foreign pension plans, insurance companies and a private foundation, has an expected investment term of eight years. With leverage the fund has a total capitalization of approximately $4 billion.

The firm’s latest fund is already fully committed to deals including the JBG Urban portfolio in the Washington DC metro area; the Hotel & Residences at L.A. Live, a 54-story high-rise in downtown Los Angeles; the Cross Phase III multifamily development being built on former US Navy property in San Bruno, California; and the Half Street Phase I mixed-use development in Washington DC.

According to a source, MacFarlane, founded by former GE Real Estate executive Victor MacFarlane, will soon be in the market seeking to raise approximately another $1.5 billion for a follow-on vehicle. The firm has invested heavily in the Washington DC metropolitan area through its latest fund. Its most recent deal is the Citypoint development in downtown Brooklyn, New York.