Partners Capital Launches $150M Investment Fund

Blanco Crossing. Image courtesy of Partners Capital

Partners Capital, the investment platform of Partners Real Estate, has launched Partners Opportunity Fund V, with plans to raise at least $150 million for investments in industrial, retail and office assets in major markets across Texas and the southeastern U.S. It is the firm’s largest fund to date.

Andrew Pappas, president of Partners Capital, said in a prepared statement the fund team should have more than $400 million in purchasing power to accumulate a strong, diversified portfolio of assets for their investors. Partners focuses on delivering risk-adjusted returns through carefully curated, value-add real estate investments, he said.

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Adam Hawkins, partner at the firm, said in prepared remarks they see a lot of opportunity in the current market and expects the pipeline for Fund V to be strong. Hawkins said acquiring assets in a challenging interest rate market aligns well with the company’s diligent and conservative approach to investing and debt financing.

During the past seven years, Partners Capital has raised and deployed four investment funds totaling more than $450 million in transaction volume. Its current portfolio comprises more than 1.4 million square feet of assets located throughout Texas’ major markets. The company is based in Houston and has offices in Dallas, San Antonio and Austin, Texas.

Previous fund deals

Partners Capital closed its fourth fund in March. In the eighth and final purchase for Partners Investment Fund IV, the firm acquired Mitchelldale Business Park, a 377,752-square-foot industrial flex property in Houston, from Hartman. Partners financed the 25-acre, 12-building portfolio with a loan provided by Origin Bank. The properties were completed between 1974 and 1978 and range in size between 58,000 and 102,292 square feet. The buildings, located about 11 miles from downtown Houston, are currently 95 percent leased.

Also in March, Partners Capital sold Blanco Crossing, a 22,606-square-foot retail center in San Antonio that had been acquired by the company in 2020 through its third investment vehicle. The buyer was identified only as a private investor in San Antonio. The sales price was not disclosed but Pappas said at the time the transaction was a testament to the firm’s disciplined investment approach and ability to navigate dynamic market conditions.