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New firm takes over TRS’ Akard Street management

Executives who spun out from Hunt Realty Investments into Banner Oak Capital Partners are managing the TRS operating company and seeking new sources of capital.

A team of former Hunt Realty Investments executives have founded Banner Oak Capital Partners, concurrently selling off Hunt’s interest in Akard Street Partners to the Teacher Retirement System of Texas (TRS), according to a Monday announcement.

Hunt had launched Dallas-based Akard Street, a real estate operating company, with TRS in December 2009. Led by Hunt’s former president, Patricia Gibson, and its former general counsel, Geoffrey Osborn, newly-created Banner Oak will now manage Akard Street’s investments for TRS and seek new investments with other operators, Osborn told PERE.

Dallas-based Banner Oak, a real estate investment management company comprising eight people, will also pursue other sources of capital, primarily pension funds and endowments, said Gibson. Banner Oak’s partnerships will be largely joint ventures or club vehicles rather than commingled funds.

Through its various operating platforms that invest across property types, the TRS platform now controls over $1.5 billion in assets, according to its website. TRS’s most recent allocation to the partnership was a $180 million commitment in December to Akard Street’s new senior housing fund, PERE previously reported. TRS also wrote a $320 million check to Akard Street’s 2010 general real estate fund, and earmarked $270 million to the group’s industrial fund in 2014, according to PERE data.

Akard Street’s most recent publicly disclosed transaction was the May purchase of a warehouse in Schiller Park, Illinois for $4.4 million, according to data provider Real Capital Analytics. The platform teamed up with Bridge Development Partners and Hunt to buy the 200,000 square foot building – with plans to demolish it – from Apollo Global Real Estate, the real estate arm of alternative investment manager Apollo Global Management.