Parmenter Realty Partners is anticipating a first close for its fourth real estate vehicle this September, as the firm looks to raise $500 million of equity. Parmenter Realty Fund IV is targeting distressed office properties in the southern half of the US, excluding Southern California, chief operating officer Andrew Weiss told PERE.
Miami-based Parmenter on Monday announced the 10th investment for its third real estate vehicle, Parmenter Realty Fund III, acquiring the VHA Place office tower in Las Colinas, outside of Dallas, for under $16 million, less than $50 per square foot. Fund III’s portfolio now has an aggregate value of approximately $600 million, according to a company statement.
The firm purchased the office building from Wells Fargo, which foreclosed on the property in March. The 326,000-square-foot mixed-use property is 82 percent leased, and combines office space with vacant retail space.
“With our intended renovations, we’ll be able to bring [the building] back to a Class A office tower,” Weiss said, adding that the firm was expecting “a lot” of distressed transactions over the next couple of years, as lenders continued to seize back assets. VHA Place is located next to Las Colinas Towers I and II, which Parmenter also purchased through its third fund for $39 million in July 2006, according to data provider Real Capital Analytics.
“Our plan is to reposition the building and then capitalise on [its location next to] our existing investment,” Southwest principal Steve Bronner said in a statement. Weiss added that the firm would be evaluating what it could do with the property’s vacant retail space. In addition to Parmenter’s headquarters in Miami, the firm has regional offices in Atlanta and Dallas, and a capital markets office in New York.