Rockwood launches ninth US value-added fund

Rockwood Capital Real Estate Partners IX is seeking $750 million to target hotels, offices, residential and retail properties throughout the US that are underperforming or suitable for redevelopment or expansion.

Rockwood Capital has launched its ninth diversified US real estate fund, PERE has learned. 

Although representatives from Rockwood declined to comment, sources familiar with the matter have revealed that the New York-based real estate investment firm has launched Rockwood Capital Real Estate Partners IX, a value-added vehicle targeting $750 million in equity commitments, with a hard cap of $1 billion. 

Like the previous funds in the series, Rockwood’s Fund IX primarily will target hotels, offices, residential and retail properties throughout the US with steady income streams that have the potential for redevelopment. In terms of geography, the firm plans to focus on California and the Boston-to-Washington corridor. In addition, it may make some purchases in Arizona and Florida on behalf of the fund. 

Prior investors in Rockwood’s previous real estate funds include Kansas Public Employees Retirement System, Maryland State Retirement and Pension System, New York State Teachers' Retirement System and the Oregon Public Employees Retirement System, according to PERE Connect. PERE understands that Rockwood is not hiring the services of a placement agent, rather it is raising the funds itself.

During PERE’s US Roundtable in September, Rockwood co-managing partner Peter Falco said the firm regularly engages in joint venture partnerships with local developers, builders and managers. He pointed out that real estate investment is “about local knowledge, local players, leasing and relationships.”

Rockwood’s first eight funds have raised nearly $5 billion in commitments. Its last vehicle, Fund VIII, closed on $964 million of equity in 2009 and is almost fully invested.