Boston-based real estate investment firm The Roseview Group and Houston-based commercial real estate firm PM Realty Group (PMRG) have formed a new $250 million joint venture in order to acquire and reposition value-added office assets. Roseview’s investment in the venture is backed by the Roseview Evergreen Fund, a $500 million separate account with a major corporate pension plan.
The venture, named Roseview-PMRG Fund I, will target mid-teens returns with a total investment per asset of $15 million to $65 million in primary and secondary US markets. PMRG and Roseview will bring an operational approach to owning the assets and, in addition to growing revenue, will focus on operating buildings more efficiently, improving the tenant experience, reducing waste and promoting eco-friendly consumption.
“This venture builds on a 20-year relationship between the principals of our two firms and our institutional partner,” said Vince Costantini, managing partner and chief executive of Roseview, in a statement. “The economy continues to recover and is fueling new job growth in many markets. As a result, we believe there exists a strong risk-adjusted opportunity to acquire and reposition existing office buildings, and the [venture] is well-positioned to competitively pursue these opportunities.”
The partnership already has closed on it first deal, acquiring 2900 Weslayan, a 137,000-square-foot office building in Houston’s Greenway Plaza submarket. The firms told PERE that they currently are underwriting several more deals and plan to invest the remaining capital over the next 18 months to two years.
Roseview-PMRG Fund I represents the third operating platform that Roseview has established on behalf of the Roseview Evergreen Fund. The separate account also invests in value-added multifamily properties through a joint venture with the Winn Companies and in GSA properties through a partnership with FD Stonewater.