Penzance, an owner, operator and developer in the Washington, D.C., metropolitan region, for more than two decades, has closed its first real estate private equity fund, the Penzance DC Real Estate Fund, with total equity commitments of $255 million. The fund’s investor base includes a diverse mix of institutional investors, including endowments, foundations and family offices.
The discretionary fund will target value-add investments in residential and commercial properties and mixed-use development throughout the Washington, D.C., metropolitan region. Penzance expects to target a portfolio size of $800 million to $1 billion of total capitalization for the fund. The fund can invest directly or as a general partner in joint ventures with other institutional partners, which should provide increased diversification and buying power.
To date the fund has closed on two investments and committed nearly 20 percent of fund equity. Assets include 1680 Wisconsin Avenue, a three-story, 17,398-square-foot office in Georgetown, and The Highlands, a mixed-use development located in the Rosslyn submarket of Arlington, Va.
Penzance will continue to invest in office and residential assets with a focus on developing or repositioning projects designed to enhance local neighborhoods with attractive environments for area residents and workforce to live, work and play.