Virtus Real Estate Capital LLC, a real estate private equity firm, has raised $408.5 million, the majority of which will be used for property investments including self-storage. Of the committed amount, $308.5 million is earmarked for Virtus Real Estate Capital II LP (VREC II), while $100 million will be directed into a separate discretionary account, according to a company press release. Launched in late 2015, the capital-raising exceeded the company’s goal of $400 million.
VREC II will invest in U.S. property types Virtus officials believe “can sustain their income stream and value, even in the face of a recession or a decline in general real estate values,” the release stated. In addition to self-storage, targeted property types include medical-office buildings, senior living, student housing and workforce housing.
“These property types benefit from major long-term demographic and economic trends, such as the aging of the Baby Boomer generation, the coming of age of Millennials, as well as certain inuring societal needs,” company officials said.
VREC II has already made 12 property investments across six states totaling $116.5 million in equity, the release stated.
“Knowing which deals to avoid is equally as important as knowing which deals to seek,” said Robert Schweizer, chief investment officer. “Likewise, it pays to be hands-on and more local in these more operationally intensive property types.”
Based in Austin, Texas, and founded in 2003, Virtus has acquired more than $3.2 billion of commercial real estate in 200 properties across the United States.