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Thursday, 03 January 2019

Investment Manager Raising Fourth Fund, Targeting Properties in Southeast U.S. and Texas

TerraCap Management is on track to raise $300 million of equity commitments for its fourth fund, which already has completed 15 investments: seven office and eight apartment properties in the Southeast and Texas. It will have the capacity to make about $1 billion of investments after leverage is taken into account.

Commercial Real Estate Direct Staff Report

TerraCap Management is on track to raise $300 million of equity for its fourth fund that will target office, apartment and industrial properties and hotels in the Southeast United States and Texas.

The Estero, Fla., investment manager already has acquired seven office and eight apartment properties in Florida, Georgia, North Carolina and Texas through the vehicle, TerraCap Partners IV. It's also under contract to buy three office properties in Atlanta, Dallas and Orlando, Fla., for $80 million. Those deals are scheduled to close this month.

TerraCap expects to complete fundraising for the vehicle in April. With debt, it expects to have an investment capacity of roughly $1 billion. It has invested about $380 million so far and expects it will make between 25 and 30 investments through the fund.

The company was founded in 2008 by Stephen...

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