An Austin, Texas-based real estate development and investment firm has closed on a $610 million private equity fund to purchase commercial real estate in five markets across the United States.
Endeavor Real Estate Group closed the Endeavor Opportunity Partners III LP fund, which is expected to yield a total capitalization of $1.5 billion. The third fund in Endeavor’s history is also the firm’s largest.
An Endeavor spokesperson said the company plans to use the fund to pursue investments in Austin; Charlotte, North Carolina; Dallas; Nashville, Tennessee; and Salt Lake City, Utah. Of those, Austin and Central Texas will be the primary focus of the fund, the spokesperson added.
“The fund is notable for not only reaching its target raise during a challenging fund-raising period for commercial real estate, but also for the strong support from new and existing partners, including over $500 million from private wealth sources,” Endeavor’s spokesperson said in a statement.
Chase Spruill, a senior vice president with Endeavor, will serve as the fund’s manager. Spruill was a member of the fund’s equity raise team.
“The opportunity set has changed over the past year of fundraising, but we still have high conviction in our target markets. Shifting generational demographics give us confidence that high job and population growth will continue to provide ample opportunities for our investors,” Spruill said in the statement.
“Our deal teams can respond quickly to areas of surging demand and know when to move out of areas that are softening. With our depth of expertise across asset classes, we are well positioned to capitalize on the current market environment.”
Added Investment
Endeavor Managing Principal Chris Ellis said the fund has nearly 300 new investors.
The fund plans to make between 20 and 25 investments across the industrial, mixed-use, multifamily and retail sectors, according to the Endeavor spokesperson.
Endeavor launched in 1999 and has since acquired or developed more than $5.1 billion in real estate assets.
Many of its developments are in the greater Austin area, such as The Domain, Domain Northside, Southpark Meadows shopping center, Rollingwood Center, residential tower The Bowie and the 342-unit Citizen House apartment complex that has been renamed as The Chloe in Kyle, Texas.
The Austin City Council and Endeavor have been negotiating to redevelop the former home of the Austin American-Statesman newspaper. Endeavor proposed to convert 19 prime acres in downtown Austin into a massive commercial real estate project with six new towers.
The firm is also developing the first phase of Gulch Union, a 20-floor and 330,000-square-foot building in Nashville.