Taconic closes on $220m fund

The New York-based real estate firm will target value-added and opportunistic multifamily, retail and office properties in New York.

Taconic Investment Partners has held a final closing on its value-added and opportunistic fund targeting multifamily, office and retail assets in New York City, according to an announcement from the New York-based commercial real estate owner and developer.

The fund, known as the Taconic New York City Investment Fund, closed with $220 million in committed equity from several large public pension funds. Taconic Investment Partners co-chief executive officer Charles Bendit told PERE that this vehicle is a follow-up to the firm's first fund, Taconic Property Fund, which was launched and closed in 2007. The firm is targeting net returns of 15 percent to 17 percent on its investments.

“The shifting real estate landscape and capital markets disruption are likely to provide opportunities for significant long-term upside potential,” said Paul Pariser, co-CEO. “We are poised to capitalize on opportunities that arise and to provide operational management through our wholly owned subsidiary, Taconic Management.” He added that the fund, which was launched in June 2010, saw its first and only close in August 2011. 

“New York is where we've done most of our investing,” added Bendit. “Our investors wanted to have a New York City investment strategy because they like the market.”

Founded by Pariser and Bendit, Taconic has acquired more than 10 million square feet of office and mixed-use properties and 3,000 apartments since its inception in 1997.