Atlanta-based real estate investment firm RCG Ventures has closed on its third value-added real estate fund, exceeding its $75 million target with a total capital raise of more than $107 million from non-institutional investors.
The oversubscribed Fund III hit its investor limit within 90 days of launching. Co-founder and chief executive officer Michael McMillen told PERE that the fund was restricted to less than 99 investors, and therefore it had to close earlier than expected.
RCG operates on a unique non-institutional investor base, acquiring capital for its past three funds solely from high-net-worth individuals and family offices. Fund III included many repeat investors, but McMillen said the firm would consider soliciting capital for future vehicles from institutions such as pensions and endowments.
“We’ll always keep the door open,” said McMillen. “We hit our capital raises without needing to investigate that particular avenue.” The company previously has worked with institutional partners on joint ventures.
RCG has begun to invest its capital with three new properties and plans to acquire two more within the next week, according to McMillen. Like its previous two funds, Fund III will invest in shopping centers throughout the United States. RCG will use the vehicle to buy properties ranging from $7 million to $15 million.
An affiliate of Argonne Capital Group, RCG acquires shopping centers, buys distressed debt and develops commercial real estate throughout the US. The company’s primary focus is purchasing and repositioning value-added shopping centers in secondary and tertiary markets.
RCG has acquired 85 assets totaling approximately $500 million of invested capital since first founded by McMillen and Michael Klump in 2003. RCG's current portfolio includes 65 assets in 19 states in the Central, Southern and mid-Atlantic regions of the US, totaling more than 6.75 million square feet.