By Jon Peterson
Admiral Capital Group, an investment fund with offices in both New York City and San Antonio founded by NBA great David Robinson and Daniel Bassichis has already one investment in the Puget Sound region. This week, the company announced that it will be expanding those efforts by bringing a portion of its recently closed Fund II to the Puget Sound region.
The company, which today owns Water’s Edge, a 304-unit community in Kent through its Admiral Capital Real Estate Fund I, hired Jarrett Kaplus as a principal with the firm to focus more of his efforts in finding properties to buy in Seattle, San Francisco as well as Portland markets. Fund II closed an equity raise of $123 million.
“This capital raise was one where we could have had the opportunity to make the fund a little bigger, maybe as much as $175 million, but we decided to keep it at the amount we ended up with,” says Dan Bassichis, co-founder of Admiral Capital.
Admiral Capital wants to focus its investment strategy for Fund II on office, apartments and retail assets. A typical deal size would be somewhere in the range of $20 million to $60 million. The fund manager hopes to find properties that can produce mid-teens net IRRs. The leverage placed on the fund will be in the range of 60 percent to 65 percent debt.
One important feature that sets Admiral Capital from other capital sources is in its efforts to re-invest some proceeds into the community where it owns assets. “We take 10 percent on our profits from a sale transaction to re-invest into the greater community where the property is located. This is something that is very important to our company,” said Bassichis.