Regent Properties is back in the market with its fourth value-added vehicle, chief executive Eric Fleiss told PERE.
The Los Angeles-based real estate investment and development firm has a $200 million target and a $350 million hard-cap for Regent Opportunity Fund IV. The firm plans to deploy capital across multiple property types in the western US, whereas previous funds in the series focused largely on office properties in the same region. Regent closed ROF II, a commingled fund, and ROF III, a separate account, in mid-2014.
“During our last fundraise, investors were more interested in single-strategy vehicles,” Fleiss said. “At this point in the market, they want us to continue to be flexible and opportunistic, to make several different bets, and to have them all in one vehicle.”
The fund series has a mid- to high-teens gross return target, Fleiss said. ROF II, which was the firm's first commingled fund, is on target to generate a return in the low 30s, while ROF III, which is almost fully invested, is on target to produce a high-teens return.
The funds' investor base comprises blue-chip institutions, high-net-worth family offices and pension funds, and BlackRock has been an anchor investor for the fund series, Fleiss said. Regent is aiming for a mid-year first close for ROF IV.
“Our existing investor base is recommitting to ROF IV and many are increasing their commitments,” Fleiss said. “We're not the kind of firm that raises funds just to increase assets under management. We feel very confident about our ability to deploy this amount of capital.”
Founded in 1989 as a family office, Regent now has over $1 billion in AUM, according to its website.