Pembrook closes second fund

The New York-based firm has raised $154 million to provide balance sheet financing for transitional properties throughout the US.

Pembrook Capital Management has held a final close for its latest real estate investment vehicle. The New York-based fund manager headed by Stuart Boesky, the former chief executive of CharterMac, now known as Centerline Capital, has raised $154 million in equity commitments for PCI Investors Fund II from investors that include public pension plans and national, regional and community banks.

Through Fund II, Pembrook is looking to provide balance sheet financing for transitional properties, including first mortgages, mezzanine (construction and acquisition/recapitalization) financing, bridge loans, note financings and preferred equity for most property types, as well as tax-exempt bond financing for the acquisition, construction and rehabilitation of multifamily housing. Investments are focused on financing for multifamily development and renovation projects, as well as transitional retail, office and industrial properties. 

Pembrook prefers US markets with high barriers to entry, strong demand and limited new development. These include, but are not limited to, such markets as New York, Los Angeles, Washington DC, Chicago and San Jose. The firm’s predecessor fund, which closed on $119 million in commitments in 2007, followed a similar investment strategy. 

Over the past three years, Pembrook has invested more than $400 million through 36 financings, primarily middle-market transactions with a total capitalization in the $10 million to $50 million range. Although representatives from Pembrook declined to comment beyond a statement issued about the fund, sources familiar with the matter told PERE that the firm has invested approximately $100 million on behalf of Fund II as of December 31.