By Jon Peterson
San Francisco-based Swift Real Estate Partners over the past 9 months has been able to garner just over 90 percent of the equity raise for its target of $500 million for Swift Real Estate Partners Fund III, according to sources aware of this capital raise.
A wide range of institutional capital sources have become investors in Fund III., and approximately 95 percent of the investors in Fund I have re-upped for Funds II and III, according to sources with knowledge of the fund’s structure. There is a very good chance that the fund will become over-subscribed given the velocity of contributions at this time and more interest than there is room for investors in the fund.
Some of the capital is already in the process of getting allocated in the market where Swift is active. The investment firm is now working on a number of deals it expects will close soon in Southern California where the fund manager will be buying assets with a combination of debt and equity totaling $250 million, according to industry sources.
When the capital raise for Fund III is complete, it will be Swift’s third completed capital raise over a five-year period. Most of the assets that were acquired for Fund I have been sold, and all of the capital for Fund II has been invested in the marketplace.
The investment strategy for all three funds has been consistent. Swift’s focus has been to acquire value-add real estate with office and industrial assets on the West Coast. This would include the targeted markets of Northern and Southern California and the Pacific Northwest.
Swift declined to comment when contacted for this story.