Origin Investments, a Chicago-based real estate private equity firm, has held a $151 million final close for Origin Capital Fund III, paving the way to acquire $600 million in value-added commercial and multifamily properties.
Origin Capital Fund III was launched in 2015 and held a $55.5 million first close in March 2016. The vehicle has a core-plus/value-added investment style, and it will invest in CBD and suburban office, multifamily, and retail properties in the United States. Origin will focus its investments on Atlanta, Houston, Dallas, Austin, Chicago, Denver, and Charlotte and Raleigh, N.C.
The $151 million of equity was raised from more than 450 different investors and is Origin’s largest fund to date. The investment strategy for the fund mirrors Origin’s first two funds, which are currently on track to generate more than a 24 percent annualized net return.
Origin Capital Fund III, when fully invested, expects to have more than 15 multifamily and office properties in eight high-growth markets across the United States. To date, the fund has invested approximately $38 million in eight properties valued in excess of $257 million.
Since July 2016, the fund has acquired eight assets, including Cherry Creek Plaza in Denver, Stella Apartments in Houston, Lee Park Tower in Dallas, and Trinity Place in Raleigh, N.C.
The fund’s predecessor, Origin Capital Fund II, closed in 2013 with $30 million in equity commitments. It employed a diversified acquisition strategy. The fund invested in value-added medical office, multifamily, office, industrial and retail properties in targeted U.S. markets. Its portfolio consists of the 12-story, 67-unit Lux24 in Chicago; the 49-unit Naper Place in Naperville, Ill.; the three-story medical office Kingwood located outside Houston; and Arium North Point, a 236-unit multifamily development in an Atlanta suburb.