Parmenter Realty Partners has held a first close on its latest distressed real estate fund, Parmenter Realty Fund IV. The Miami-based institutional fund operator closed on $100 million in commitments from a mix of large institutions, university endowments, fund of funds and select high-net-worth investors.
Parmenter originally was eyeing a first close on Fund IV in September of last year, but a tough fundraising environment delayed that by two quarters. “It has been a challenging fundraising environment, but we are proud to have succeeded where we know others have not had similar success,” said Darryl Parmenter, president and chief executive officer. “We are pleased that our track record has instilled our partners with the confidence to step up and invest with us.”
The first closing of Fund IV coincides with a period in which as much as $1.3 trillion in troubled commercial real estate assets are expected to be sold at significant discounts by lending institutions. “As a result of the depth of the recent economic downturn and the continued economic recovery, we are confident the opportunities in this cycle will be generational,” Parmenter said.
Fund IV is targeting a total fundraising effort of $500 Million, which with leverage will allow the fund to purchase in excess of $1.5 billion in assets. The value-added vehicle will target distressed office buildings in in-fill locations in the southern half of the US, for which Parmenter will seek to create operating efficiencies and use its development skills to physically enhance the properties, thereby returning them to Class A status.