DivcoWest holds $1.6b final close

Divco West Real Estate Services, a privately-owned real estate investment firm headquartered in San Francisco, has held its final close on DivcoWest Fund V, its fifth commingled value-add investment fund.

Exceeding its $1.5 billion target, the fund’s commitments total approximately $1.585 billion, making it DivcoWest’s largest fund to date with approximately 80 percent of the commitments from existing investors. More than 40 institutional investors invested in the fund, including domestic and foreign public and private pension funds, financial institutions, endowments and high net worth individuals.

In common with DivcoWest’s four prior funds, Fund V will primarily invest in office and R&D properties located in select innovation markets characterized by strong education, employment, amenities and transportation systems with high barriers to entry including but not limited to the San Francisco Bay Area, Boston, Southern California, Washington, D.C., New York, N.Y., Seattle and Austin. DivcoWest and its predecessor have acquired more than 110 investments, in excess of 425 buildings or 40.2 million square feet of commercial space, primarily throughout the United States utilizing total costs of approximately $9.3 billion.

25 percent of the fund is already designated to a group of investments, according to Stuart Shiff, DivcoWest’s founder and CEO.

The fund’s predecessor, DivcoWest Fund IV, closed in 2014 with $976 million of total commitments and has to date returned over 130 percent of invested capital.

Through its funds, DivcoWest seeks to add value through a combination of capital investment, repositioning, redevelopment and leasing, as well as by leveraging its vertically-integrated platform and experience through multiple market cycles.

As of second quarter 2017, Divco West has approximately $5 billion in assets under management.