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Rubenstein holds $470m first close on latest fund – Exclusive

The firm is targeting a larger final close than its $515 million predecessor vehicle, sources told PERE.

Philadelphia-based Rubenstein Partners has held a first close for its latest office fund on about $470 million, PERE has learned.

The private equity real estate firm garnered $368 million from 22 investors for Rubenstein Properties Fund III, according to a filing with the US Securities and Exchange Commission (SEC) last week. However, the firm has raised an additional $100 million from other investors for the fund, sources familiar with the firm said. The firm declined to comment, but PERE understands that the value-added vehicle is nearly fully subscribed. A target for the fund has not been publicly disclosed.

Rubenstein launched Rubenstein Properties Fund III in May 2015, according to an SEC filing. The firm, which was founded in September 2005, focuses on value-added office investments primarily in the eastern US.

The fund’s predecessor, Rubenstein Properties Fund II, which was launched in May 2012, had a $500 million target and ultimately closed in April 2014 on $515 million in commitments, according to the firm. Rubenstein is targeting a “moderately larger” size for the latest fund, a source told PERE.

Investors in Rubenstein Properties Fund III include the Texas Municipal Retirement System, which committed $75 million, and Maine Public Employees’ Retirement System, which allocated $30 million, according to PERE Research & Analytics.

Rubenstein’s latest publicly-disclosed transaction was the April purchase of Interstate Office Park, an 11-building campus in Atlanta, for $90 million, according to a statement last month. Capital for the acquisition came from Rubenstein Properties Fund II, according to the firm’s website.

The firm had over $1 billion in assets under management as of the first quarter of 2016, according to the firm.