Origin Investments Fund III Fully Subscribed at $151 Million
Origin Investments Fund III Fully Subscribed at $151 Million;
Performance and discipline are key to retain and attract investors
CHICAGO (July 11, 2017)—Chicago-based real estate private equity firm Origin Investments has completed the final closing for its fully subscribed $151 million Fund III, paving the way to acquire $600 million in value added commercial and multifamily properties.
The $151 million raised was raised from more than 450 different investors and is Origin’s largest fund to date. The investment strategy for Fund III mirrors Origin’s first two funds which are currently on track to generate more than a 24% annualized net return. Preqin, an industry leader that tracks the performance of private equity fund managers, ranked Origin’s first two funds in the top quartile.
“The success of our capital raise for Fund III can’t be explained by any one thing we do well; there is no single, magic bullet.” said Michael Episcope, one of the cofounders and principals of Origin Investments. “It is a confluence of factors: a solid performance history, great team, communication and reporting that’s both accurate and easy to understand, a disciplined approach to asset selection and a philosophy that is centered on managing risk.”
Origin Investments’ Fund III, when fully invested, expects to have more than 15 multi-family and office properties in eight high-growth markets across the U.S. To date, the Fund has invested approximately $38 million in eight properties valued in excess of $257 million.
“In the end, everyone is judged by performance: did they accomplish what they set out to do; did they exceed expectations,” said David Scherer, Origin’s other cofounder and principal. “We’ve done that with a team of professionals who execute with great precision. We’ve also gone a step beyond by establishing a platform that makes real estate investing more accessible and transparent.”
Further evidence of the success of the firm and Fund III is the number of investors now participating. In addition to the hundreds of new investors in the Fund, more than 92 percent of those investing in Funds I and II also invested in Fund III.
Since July 2016 Fund III has acquired eight assets, including Cherry Creek Plaza in Denver, Colorado; Stella Apartments (fka AMLI at the Medical Center), Houston, Texas; Lee Park Tower in Dallas, Texas and Trinity Place in Raleigh, North Carolina; The Clayson (fka Village Park of Palatine); Keystone 100, Durham, NC; Puritan Mill, Atlanta, GA; and 511 Meeting, Charleston, SC.
- Trinity Place is a four-story, 114,547 square-foot, Class A office building in the heart of the Research Triangle Park market in Raleigh, N.C. Trinity Place was an attractive investment because of its geographic location, value-add opportunity and the overall stability of the asset, as demonstrated by the credit-worthiness of the companies that make up the tenant roster.
- Stella Apartments (AMLI @ the Medical Center) is a 334-unit apartment complex located near the Texas Medical Center in Houston. Origin launched a comprehensive, complex-wide exterior and interior modernization program to further enhance the competitive position of the property.
- Lee Park Towers is a 121,000 -square-foot, two-building Class B office complex in Dallas’ Uptown/Turtle Creek submarket. Origin and its joint venture partner have launched a comprehensive modernization program to enhance the appeal and the value of the office complex.
- Cherry Creek Plaza is a 314,000-square-foot, two-building office complex in suburban Denver that was acquired in a joint venture. The venture has completed a comprehensive renovation program designed to improve the occupancy and the value of the property.
- The Clayson (Village Park of Palatine) is a 448-unit apartment complex in northwest suburban Chicago (Palatine). The Clayson represents an opportunity to renovate and reposition the asset, bringing it to competitive standards and increasing occupancy and rental rates.
About Origin Investments
Origin Investments is a private real estate manager that provides best-in-class real estate solutions for individual investors, family offices and advisors to build and preserve wealth. They build, buy and finance multifamily real estate projects in fast-growing markets throughout the U.S. Since its founding in 2007, Origin has executed more than $2.5 billion in real estate transactions and its principals have invested more than $60 million alongside investors. Origin prides itself on offering unparalleled service to investors and its performance; they are in the top decile of the best-performing global private real estate fund managers ranked by Preqin, an independent provider of data on alternative investments. Origin is currently accepting new investors for its IncomePlus and Multifamily Credit Funds, which seek to provide tax efficiency, enhance portfolio yield, maximize growth and minimize portfolio volatility. To learn more, visit www.origininvestments.com.
*Preqin data as of June 2016