Northstar Commercial Partners is on the fundraising trail for a new opportunistic series, according to media reports. At the same time, it also is reportedly in the market with a new vehicle under an existing opportunistic strategy.
The Denver-based real estate investment firm has a $350 million target for Northstar Enterprise Opportunity Fund I, according to media reports. The firm declined to comment for this story, but media reports said that Northstar is targeting a 17 percent return for the vehicle, and plans to invest in distressed or value-added office, medical-office, retail and multi-family properties, in addition to debt. Northstar plans to work with local operators to buy properties off-market, but maintain majority stakes in its investments.
The firm is seeking investments from high net worth individuals, broker-dealers and small institutions, according to media reports. Northstar is not using a placement agent.
To oversee this fund series, Northstar hired Peter Auerbach away from Alto Real Estate Funds last month and named him its new chief investment officer (CIO), according to his LinkedIn profile. Auerbach spent almost two years as Alto’s CIO.
Northstar is also seeking to raise $300 million for Northstar Real Estate Opportunity Fund II, a vehicle it launched last year, according to media reports. With capital from the fund, the firm plans to buy distressed office and industrial buildings and develop healthcare properties. This fund series is led by Northstar co-founder and chief executive officer Brian Watson.
The firm’s most recent publicly-disclosed transaction was the purchase of Aurora Park, a strip mall located at 14531 E Alameda Avenue in Aurora, Colorado in October from the Quiat Companies, according to real estate data provider Real Capital Analytics. Northstar bought the 36,476 square foot property for $3.5 million, according to RCA.