With an initial $50 million capitalization, a group of Arkansas business leaders has formed a new private real estate fund that will focus on acquiring assets throughout the Midwest and Southeast regions of the country.
The founders of the fund, CapRocq Core Real Estate Fund, L.P., anticipate adding additional investors with a final closing expected in the first half of 2013. The investment group includes Franklin McLarty, Dewitt Smith, Kevin Huchingson, and Ted Dickey.
Combined, the group has 77 years of commercial real estate experience and a history of more than $1 billion in combined real estate transactions. Smith will lead the day-to-day operations of the fund, while Huchingson and Dickey will serve as chief operating officer and chief financial officer, respectively. McLarty is a principal of the fund.
“We are excited to launch one of the largest ever private real estate funds in Arkansas,” said Huchingson. “Our focus will be on building a high-quality, diversified real estate portfolio with properties throughout America's heartland. We believe we will be able to deliver exceptional value to our investors while providing an attractive yield.”
At the initial closing, CapRocq Core completed two significant acquisitions in Lowell, Ark., and Columbia, S.C. The Northwest Arkansas acquisition included a five-building office portfolio consisting of 162,500 square feet, while the South Carolina acquisition included a two-building, suburban office campus of 157,000 square feet.
“The market conditions are right for a seasoned real estate team to outperform by catering to the underserved secondary markets with solid economics,” said Smith. “To launch such a venture from our home state with an Arkansas-based team is particularly gratifying to everyone associated with the endeavor.”
“We can all be proud that a venture of this type is coming together in our home state,” said Thomas F. “Mack” McLarty, who is serving on the fund's advisory board along with Dickson Flake. “It's a testament to the positive business climate in Arkansas and the South, and I look forward to supporting CapRocq Core's first-class, contemporary team as they build meaningful value for our investors.”
CapRocq Core's investor base will be largely comprised of leading Arkansas-based institutions and accredited individual investors. Colliers International – Arkansas will serve as the exclusive real estate broker and advisor to CapRocq Core. Other Arkansas institutions that have helped with the formation of the fund include Friday, Eldridge & Clark and JPMS Cox.