Reporter- San Francisco Business Times
Swift Real Estate Partners plans to swiftly make more real estate investments after raising $330 million in equity for a fund that could potentially buy $1 billion worth of real estate on the West Coast.
The company, founded in 2010 by Christopher Peatross, has already bought or traded 2.5 million square feet of assets and is contract for more than 1 million square of new deals fueled by the recent fund.
“We’re going to be buying value-add real estate on the West Coast,” Peatross said.
Investors in the new fund include foundations, endowments and pension funds. Peatross expects that Swift Realty will spend the fund over the next two years and could leverage its equity to buy close to $1 billion in assets. Already the firm has more than 1 million square feet tied up, some of which is in the South Bay.
Peatross said that while the company had focused on the Bay Area in the past, it will broaden its range to find more deals. The company targets industrial and office properties with some avenue for increasing value whether it’s a distressed deal, low vacancy or in need of physical improvements.
Swift Realty employed that strategy to capitalize on the downturn in the real estate market buying up properties in San Francisco, Concord, San Mateo and Fremont.
The firm’s deals include buying the 350,000-square-foot One Concord Center for $43 million or $118 per square foot, the 1.1 million-square-foot former Bank of America campus in Concord for $88 million or $74 per square foot, and the 200,000-square-foot Tower Plaza building in San Mateo, a 200,000-square-foot building it paid $15.5 million in 2011 and sold for $41.7 million in late 2013.
Blanca Torres covers East Bay real estate for the San Francisco Business Times.