TriGate Capital has concluded fundraising for its second real estate investment fund. Although representatives from the Dallas-based fund manager declined to comment, sources familiar with the matter told PERE that TriGate Property Partners is set to close on $324 million of capital this week.
Through the comingled vehicle, TriGate will pursue direct investments in distressed debt and equity of existing properties with the goal of value creation through the recapitalization and repositioning of real estate assets. TriGate focuses its activities in Sunbelt markets including Florida, Georgia, Texas, Arizona, Colorado and California in addition to having completed multiple investments in suburban Boston and Chicago.
Fund II is looking to invest primarily in commercial property types. If the capital markets shifted, however, TriGate may entertain the idea of investing in multifamily, although it has not done so before.
TriGate is looking to make investments between $5 million and $20 million through Fund II. Thus far, the firm has invested approximately $65 million on behalf of Fund II in a number of transactions.
Fund II was launched in November 2011 and held a first close in July 2012. Investors in the vehicle include the San Francisco Employees’ Retirement System, the California State Teachers’ Retirement System (CalSTRS) and the Teacher Retirement System of Texas through its emerging manager program.
TriGate’s first fund, TriGate Property Partners, closed on $120 million in 2007. Fund I only had one investor – CalSTRS – currently is fully invested.