Marcus Partners Closes Largest Fund at $650M
Commitments from both longtime and new investors pushed the amount well beyond its original hard cap.
Paul Marcus, Founder & CEO, Marcus Partners. Image courtesy of Marcus Partners
Marcus Partners has reached a final closing of its Marcus Capital Partners Fund IV L.P., a value-add real estate fund, with commitments totaling $650 million.
The amount exceeds both the original $500 million fundraising target and $550 million hard cap, which the company called “a demonstration of investor confidence in the firm’s mission, team and investment strategy.”
Marcus Partners COO & Head of Capital Patrick Sousa noted in a prepared statement that investors in the fund included both “many longtime investors” and “a select number of new key relationships.”
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“Amid today’s volatile investment landscape, we remain keenly focused on capital preservation,” Marcus Partners Founder & CEO Paul Marcus told Commercial Property Executive. “While today’s complicated investment environment is creating greater risk, we believe it will also generate additional opportunities.”
“Being a diversified value-add investor allows us to adjust with market conditions,” he added. “We are seeing opportunities in cash-flowing assets that offer both downside protection and upside value-creation potential. We are also keenly focused on opportunities … for change-of-use and major repositioning efforts.”
Marcus Partners is headquartered in Boston, with regional offices in metro New York City and metro Washington, D.C.
From steel to cells
Active in Boston, New York and Washington, D.C., Marcus Partners has in recent years particularly focused on value-add opportunities in industrial, multifamily and life science assets.
As an example of that, in June Marcus Partners began construction on the Foundry at Drydock, on the South Boston waterfront. The 262,000-square-foot, two-building project will include adaptive reuse of a former steel manufacturing building and has already found its sole tenant, biotech company Ginkgo Bioworks.
Citizens Bank N.A. provided $194 million in construction funding. The project has been well along in the planning stages since at least April 2021.
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