Commercial Real Estate Direct Staff Report
RMR Group, a Boston-area investment manager that serves as the external manager of 10 real estate companies, including seven public REITs, has launched an investment fund that will pursue office properties throughout the country.
The company was launched by Barry M. Portnoy in 1986 and now is run by his son, Adam Portnoy. Barry Portnoy died earlier this year at the age of 72.
RMR has committed $100 million toward the RMR Office Property Fund, while the Portnoy family office is committing $206.3 million of equity, in the form of 15 office properties with 1.1 million square feet that it's contributing. The property's value is based on an 8.5 percent capitalization rate.
The Portnoy family office owns a 52 percent stake in RMR.
The portfolio that's being contributed is 89 percent occupied by tenants who still have a weighted average 3.5 years left on their leases.
Six of the properties are in Austin, Texas, five are in Chantilly, Va., three are in the Boston suburbs of Framingham, Norwell and Watertown, Mass., and the last...

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