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LRG Capital Launches Real Estate Fund
Despite California’s being embattled in dropping home values after the credit crunch hit its real estate market, the global financial services boutique will seek to find a bottom for the cycle.
September 1, 2008
LRG Capital Real Estate Ventures, a subsidiary of LRG Capital Group, announced the formation of its first fund.
The fund will make equity investments in commercial properties near California’s largest cities, as well as development projects for office, retail, multi family, industrial and mixed use properties.
The fund’s first buy was a commercial office building in Marin County, California. Terms were not disclosed; the property is going to be tethered to other existing assets in LRG Capital Real Estate’s portfolio. The move to start buying out property in California comes as that state’s real estate market has been perhaps hardest hit of any US state during the ongoing credit crunch and plunge in real estate values. Still, should LRG properly time its purchases to coincide with the bottoming of California’s real estate cycle, it will be positioned to reap a substantial return.
"We're pleased that the Fund's first purchase is in a highly desirable and rapidly growing area at a price well below replacement cost," said Lawrence Goldfarb, chief executive of LRG Capital Group. "This well-leased property benefits from a long history of stability and provides both cash flow and capital appreciation."
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