Posted 1/24/2013 10:52 am
Updated 11 months ago
Four Arkansas businessmen on Thursday announced a new private real estate fund that will focus on acquiring assets throughout the Midwest and Southeast United States.
Dewitt Smith III, Kevin Huchingson, Franklin McLarty and Ted Dickey announced CapRocq Core Real Estate Fund L.P., boasting $50 million in initial capitalization and two acqusitions: a five-building, 162,500-SF office portfolio in Lowell and a two-building, 157,000-SF suburban office campus in Columbia, S.C.
The four founders said they expect adding more investors to the fund with a final closing in the first half of 2013.
"We are excited to launch one of the largest ever private real estate funds in Arkansas," Huchingson, the fund's co-founder and COO, said in a news release. "Our focus will be on building a high-quality, diversified real estate portfolio with properties throughout America's heartland. We believe we will be able to deliver exceptional value to our investors while providing an attractive yield."
"The market conditions are right for a seasoned real estate team to outperform by catering to the underserved secondary markets with solid economics," said Smith, co-founder and CEO. "To launch such a venture from our home state with an Arkansas-based team is particularly gratifying to everyone associated with the endeavor."
The group said Smith will lead the fund's day-to-day operations, with Huchingson as COO and Dickey as CFO. McLarty is a principal of the fund.
Thomas F. "Mack" McLarty, an auto sales executive who was a chief of staff in the Clinton Administration, and Dickson Flake, the veteran commercial real estate executive, are on the fund's advisory board. Mack McLarty is Franklin McLarty's father.
The group said its investor base "will be largely comprised of leading Arkansas-based institutions and accredited individual investors." Colliers International of Arkansas will be the group's exclusive real estate broker and advisor. Other Arkansas companies helping with the formation of the fund include law firm Friday Eldridge & Clark and accounting firm JPMS Cox, both of Little Rock.