PUBLICATION: Institutional Real Estate Inc.
TITLE: LOCI Capital seeks $250m for second opportunistic real estate fund
AUTHOR: By Cali Persall
DATE: March 30, 2023
Loci Capital, a real estate investment manager focused on middle-market real estate investments throughout the Southeast, is seeking to raise $250 million for its new fund, Loci Capital Opportunistic Fund II, which began fundraising on March 15.
Loci Capital Opportunistic Fund II will invest in opportunistic and value-add real estate investments primarily in growth markets throughout the southeastern United States. The fund will pursue a diversified strategy consistent with the track record of its management team, which specializes in multifamily, retail, office, hospitality, mixed-use and industrial.
Loci Capital Opportunistic Fund II so far has around $50 million soft-circled for the first close from existing investors based on conversations Loci had during the past six months, a spokesperson for the firm confirmed in an email. The fund will accept a maximum of $500 million of commitments so it can continue to provide fund investors significant co-investment opportunities.
Loci finalized documentation with Greenburg Traurig as fund counsel and is currently engaging with all its Fund I Investors, as well as relationships the firm has developed since its inception in 2019, to determine interest as it works toward a first close, which is expected in first quarter 2023. The investor base is expected to be a mixture of high-net-worth and institutional capital. Loci expects to capture reinvestments from more than 90 percent of its existing investor base, which includes high-net-worth individuals and family office investors.
“We expect to commence actively marketing our fund to new investors, including institutions, in the coming weeks,” said Casey Wilson, principal, head of investor relations, at Loci, who joined the firm in July 2022 to help expand its investor relationships to the institutional market. “We believe that our lower investment threshold and institutional pedigree will continue to make us a manager of choice for investors looking to gain exposure to opportunistic real estate opportunities in the Southeast.”
Loci Capital was founded in 2019 when co-founders Mike Phillips and Patton Chillura spun the firm out of Lubert-Adler, where Phillips served as a managing principal and voting member of the investment committee and Chillura was an associate for Lubert-Adler Real Estate Funds.
The firm’s first vehicle in its opportunistic fund series, Loci Capital Opportunistic Fund I, held its final close in December 2021 and has since fully deployed its capital ($60 million with a $10 million sidecar) alongside an additional $180 million of controlled co-investments.