Key Takeaways
- • Tishman Speyer and Dutch investor Bouwinvest Real Estate Investors launched a joint fund to acquire top U.S. office properties, targeting both major and growth markets, according to Commercial Observer as reported by The Real Deal.
- • Fund size, acquisition target volume, and earmarked capital were not disclosed.
- • This is not the first collaboration between the two firms; they previously partnered on the Korea Living Venture fund investing $400 million in Seoul's multifamily market.
- • Tishman Speyer's Chrysler Building return involves a 150-year ground lease with landowner Cooper Union and a $235 million investment from Tishman and partners, including Canada's PSP Investments.
- • The broader office market is attracting capital, including the $350 million RCS Contrarian Office Fund launched by Real Capital Solutions to acquire up to $850 million in distressed Class A and B office assets.
Summary
Tishman Speyer and Dutch firm Bouwinvest Real Estate Investors have launched a joint fund to acquire top office properties throughout the United States, according to Commercial Observer. The vehicle, Bouwinvest-Tishman Speyer SMA, will target both major markets and growth markets. Details including the volume of acquisition targets and the capital committed have not been disclosed.
The partnership is not new. The two sides previously worked together on a Korea Living Venture fund that invests $400 million in Seoul's multifamily market. In a statement, Tishman executive Nate Shanok said the firms see "attractive opportunities to acquire well-located office assets in markets with durable demand drivers and limited new supply, and reposition them to meet the evolving needs of today's customers."
The new fund has already been linked to Tishman's return to the Chrysler Building in Midtown Manhattan. Earlier this month, Tishman and landowner Cooper Union announced a 150-year ground lease for the property, with a $235 million investment from Tishman and its partners, which include Canada's PSP Investments. The firm and its partners are using equity to finance the ground lease and building improvements. Planned updates include refreshed amenities in the underground arcade and on the 61st floor, facade restoration, and ready-to-occupy office suites for most vacant or soon-to-be-vacant spaces.
Tishman and Bouwinvest are not the only investors targeting office assets. Over the summer, Colorado-based Real Capital Solutions launched the $350 million RCS Contrarian Office Fund to acquire up to $850 million in distressed Class A and Class B office properties. CEO Marcel Arsenault personally committed $50 million to the fund, which targets opportunities in at least 15 markets.
The partnership is not new. The two sides previously worked together on a Korea Living Venture fund that invests $400 million in Seoul's multifamily market. In a statement, Tishman executive Nate Shanok said the firms see "attractive opportunities to acquire well-located office assets in markets with durable demand drivers and limited new supply, and reposition them to meet the evolving needs of today's customers."
The new fund has already been linked to Tishman's return to the Chrysler Building in Midtown Manhattan. Earlier this month, Tishman and landowner Cooper Union announced a 150-year ground lease for the property, with a $235 million investment from Tishman and its partners, which include Canada's PSP Investments. The firm and its partners are using equity to finance the ground lease and building improvements. Planned updates include refreshed amenities in the underground arcade and on the 61st floor, facade restoration, and ready-to-occupy office suites for most vacant or soon-to-be-vacant spaces.
Tishman and Bouwinvest are not the only investors targeting office assets. Over the summer, Colorado-based Real Capital Solutions launched the $350 million RCS Contrarian Office Fund to acquire up to $850 million in distressed Class A and Class B office properties. CEO Marcel Arsenault personally committed $50 million to the fund, which targets opportunities in at least 15 markets.
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