Chevy Chase, MD

FEDERAL CAPITAL PARTNERS CLOSES ON $529.2 MILLION FUND II


Federal Capital Partners (FCP) today announced the closing on FCP Realty Fund II, L.P. (Fund II), a $529.2 million fund targeting multifamily, office, retail and industrial opportunities throughout the Mid-Atlantic region. The fund, when fully invested, is expected to accommodate approximately $1.5 billion of total investments. Fund II has already closed 14 investments utilizing $103.0 million of fund equity and representing value of $367.0 million. FCP has grown the firm to accommodate its increased assets under management, larger fund capacity and geographic expansion, more than doubling its staff over the past several years.

“FCP is extremely pleased with the response to the Fund II offering, which was over-subscribed in a challenging economic and fund raising climate,” said FCP Managing Partner, Esko Korhonen. “Since closing our initial fund in 2008, FCP has closed more than 30 transactions, representing a range of investments from structured loans and equity investments to the purchase of a public company, with an aggregate value in excess of $1.6 billion, bringing total assets under management for FCP to $2.4 billion. We are excited at the prospects for our fund given the opportunities created by continued disruptions in the capital markets and the positive growth outlook for markets in the Mid-Atlantic region.”

Mr. Korhonen continued, “FCP’s active investment pace is, in large part, due to its ability to move quickly in markets where it has deep knowledge and established relationships. We have a proven track record closing complex transactions, in particular those that have a need for redevelopment and repositioning to fully achieve value. Our access to fully discretionary capital also allows for the flexibility to invest throughout the capital stack as equity, preferred equity, mezzanine debt or any combination of the above.”

 

About Federal Capital Partners

Federal Capital Partners (FCP) is a privately held real estate investment company that has invested in or financed more than $3.0 billion in assets since its founding in 1999. FCP is seeking debt and equity investments in commercial and residential real estate throughout the Mid-Atlantic region, including Washington DC, Maryland, Pennsylvania, Virginia, Delaware, West Virginia, New Jersey and the Carolinas. FCP buys assets directly as well as through joint ventures with local operating partners through equity, preferred equity or mezzanine debt investments. The firm, based in Chevy Chase, MD, manages $769.2 million of discretionary capital. FCP is currently investing FCP Realty Fund II, L.P., a $529.2 million commingled, discretionary fund closed in 2012. For further information on FCP, please visit www.fcpdc.com