RECAP closes latest US opportunity fund

The New York-based real estate investment advisor has closed on approximately $120 million in equity to invest predominantly in residential properties in the US, although the firm has the ability to invest in commercial real estate as well.

Real Estate Capital Partners (RECAP) has closed the third in its “Metropolitanseries of real estate opportunity funds. Although focused predominantly on residential properties and developments in the US, the New York-based investment firm also has the ability to invest in commercial properties through the vehicle. 

According to the firm, RECAP Metropolitan Opportunity Fund III has received $80 million in equity commitments plus an additional $40 million in co-investment capital. Through the fund, RECAP has the ability to invest in both commercial and residential assets. However, the properties purchased on behalf of Fund III so far have been in the residential space—specifically, multifamily and assisted-living assets. 

To date, RECAP has invested nearly $60 million of equity on 11 properties behalf of the fund. Investments include Bristol Place, a 390-unit multifamily asset in Houston; Onion Creek ALZ, an assisted-living development in Austin; and Metro at Wilmington Station, a planned 108-unit luxury multifamily development in the greater Boston area. All of the acquisitions have been made through joint ventures. According to RECAP founding partner Karin Shewer, the firm anticipates investing in approximately five more assets via Fund III. 

RECAP Metropolitan Opportunity Fund II closed in mid-2011 on approximately $63 million in equity and $24 in co-investments. Metropolitan Opportunity Fund II is now fully invested in 13 properties. To date, the firm has returned approximately 70 percent of the equity after the sale of four assets in this portfolio.

The RECAP Metropolitan Opportunity Fund series allows the firm to invest in both multifamily and commercial properties. This differs from the RECAP Investments fund series, which only targets multifamily properties.

Separately, RECAP recently expanded its operations from the US to Germany. As a means of accommodating this expansion, the firm hired Thomas Etzel as managing director and head of strategy and business development to oversee its German investment activities.

Founded in 1989, RECAP has a staff of more than 60 professionals spread between offices in New York, Dallas, San Francisco and suburban Washington DC. The firm has invested more than $10 billion in US real estate on behalf of international investors.