Tishman Teams With Dutch Investor on Office Fund
Rob Speyer has a new office fund underway, a vehicle the Chrysler Building neatly fits into.
Tishman Speyer and Dutch firm Bouwinvest Real Estate Investors launched a joint fund to acquire top office properties throughout the United States, the Commercial Observer reported. Bouwinvest-Tishman Speyer SMA will target both major markets and growth markets.
Details of the fund, including the volume of acquisition targets and the money being earmarked for the fund, were not disclosed. This isn’t the first time the two sides have come together, as the two partnered on a Korea Living Venture fund to invest $400 million in Seoul’s multifamily market.
“Together, we 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,” Tishman executive Nate Shanok said in a statement.
The fund already helped support Tishman’s grand return to the landmark Chrysler Building in Midtown Manhattan.
This month, Tishman and landowner Cooper Union announced a 150-year ground lease for the property. The deal includes a $235 million investment from Tishman and its partners, which include Canada’s PSP Investments.
The firm and its partners were said to be using equity to finance the ground lease and improvements to the building. Updates are expected to include refreshed amenities in the underground arcade and on the 61st floor, a restoration of the facade and the design of ready-to-occupy office suites for a majority of the vacant or soon-to-be vacant spaces.
Tishman and Bouwinvest are not the only investors buying into the office market.
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 assets.
Chief Executive Officer Marcel Arsenault, who personally committed $50 million to the fund, aims to capitalize on the need for high-quality workplaces as the firm targets opportunities in at least 15 markets.
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