Federal Capital Partners Closes Third Investment Fund

FCP Realty Fund III is expected to accommodate approximately $1.7 billion.

Chevy Chase, Md.—Privately held real estate investment company Federal Capital Partners recently completed the closing of an investment fund targeting multifamily and commercial properties. FCP Realty Fund III LP is a $512.1 million fund that has already closed $332.4 million worth of committed equity, representing a value of $1.1 billion. The fund is expected to accommodate roughly $1.7 billion of total investments when fully committed. Given its increased activity, FCP has doubled its staff over the past few years.

Windsor at Potomac Vista

Windsor at Potomac Vista, Woodbridge, Va.

Back in 2012, the company closed FCP Realty Fund II, a $529.2 million venture that accommodated roughly $1.5 billion in total investments. The last two acquisitions completed by FCP are the purchase of the Windsor at Potomac Vista in Woodbridge, Va. for $60.5 million, and the River Trace Apartments in suburban Atlanta for 29.5 million.

According to FCP Managing Partner Esko Korhonen, the company has completed more than 100 deals since it raised its first fund in 2008. During this interval, FCP closed deals “representing a range of investments from structured loans and equity investments to the purchase of a public company, totaling an aggregate value in excess of $4 billion,” Korhonen also noted. Financial advisory and asset management firm Lazard was acknowledged for its role in the FCP Realty Fund III fundraising.

Image courtesy of Yardi Matrix