AUGUST 26, 2013

RCG Ventures exceeds final fundraising goal

by Andrea Waitrovich

RCG Ventures has held a $107 million final close for its third value-added fund, RCG Ventures Fund VIII, exceeding its fundraising goral of $75 million. The vehicle launched 90 days ago.

“We are very pleased with the interest level in our most recent fund which includes many repeat investors, as well as new ones,” said Michael McMillen, CEO and co-founder of RCG Ventures, in a statement.

The fund has started to invest its capital. Like its predecessors, Fund III will invest in value-added shopping centers throughout the United States, particularly anchored retail real estate or real estate that can be re-anchored. Investments usually will have big retail tenants or retail hubs, such as Walmart or Target.

“Although the commercial real estate markets continue to rebound, we continue to expect many opportunities in the value-add retail sector from motivated sellers. Our combination of financial capital, an excellent track record and an accomplished platform makes us poised to take advantage of these opportunities,” McMillen added.

The firm recently made its first investment in New York state, purchasing Northway Plaza in Queensbury, N.Y., for $5.5 million. RCG Ventures intends to redevelop the 23-acre plaza and attract other tenants to fill smaller vacancies.

Fund II closed in 2010 with $51 million and is fully invested. Its portfolio of properties includes the 138,274-square-foot Mays Crossing in Stockbridge, Ga., and McMinn Plaza in Athens, Tenn. Both were acquired in April. In addition, Fund II sold Shannon Square in Atlanta for $8 million. The vehicle purchased the property in 2010.

RCG Ventures, an affiliate of Argonne Capital Group, is an Atlanta-based privately funded real estate investment group that acquires shopping centers, buys distressed debt and develops commercial real estate in the continental United States. The company’s primary focus is acquiring and repositioning value-add anchored shopping centers in secondary and tertiary markets. Since inception in 2003, RCG has acquired 85 assets totaling approximately $500 million of invested capital. RCG’s current portfolio includes approximately 65 assets in 19 states, and more than 6.75 million square feet.

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