Normandy launches third fund

The Morristown, New Jersey-based real estate fund manager is seeking $500 million for a value-added vehicle to target office properties in New York, Boston and Washington DC.

Normandy Real Estate Partners is back on the fundraising trail with the launch of its third real estate investment fund, PERE has learned. 

According to sources familiar with the situation, Normandy Real Estate Fund III is targeting $500 million in total capital commitments and minimum commitments of $10 million. Fundraising for Fund III is being run by placement agent Mercury Capital Advisors. Officials at Mercury Capital declined to comment, and representatives from Normandy could not be reached for comment by press time.

The value-added vehicle is looking to invest in US office properties, primarily in New York, Boston and Washington DC. In addition, the fund is selectively targeting assets in Los Angeles and San Francisco. The vehicle is targeting a gross IRR of 18 percent. 

Normandy's previous vehicle, Normandy Real Estate Fund II, was launched in 2007 and closed on $350 million in total equity commitments, according to the Morristown, New Jersey-based firm's website. With leverage, Fund II has more than $1 billion of purchasing power and currently is investing in properties, based on data from PERE Connect.