Embarcadero Capital Raises $140MM for New Commingled Fund

Yardi Matrix, Las Vegas, Phoenix, Sacramento, San Francisco, Bay Area, San Jose, Seattle, Houston, Multifamily Market

By Jon Peterson

Belmont-based Embarcadero Capital Partners has held a final closing for its Embarcadero Capital Investors Five commingled fund with a total capital raise of $140 million.

“With this closing of the fund we will now be focused on investing the capital going forward. We have already made four investments for the fund. These are properties located in Sunnyvale, Milpitas, downtown Oakland and in the South of Market area of San Francisco,” says Eric Yopes, a principal with Embarcadero Capital. These properties make up about 35 percent of the fund at this point.

One of the recent properties acquired by the company includes the 57,000 square-foot 475 Oakmead Parkway building in Sunnyvale, for which Embarcadero paid $15.3 million, or roughly $268 per square foot.

There were many different investors that placed capital into the fund. One of these was a $7.5 million commitment from the University of Houston Endowment Fund, according to a board meeting document from this investor.

This commingled fund will be looking to invest in either office buildings or R&D properties for Investors Five. The leverage placed on the fund will be in the range of 50 percent to 60 percent and a regional investment strategy from a geographical perspective. It zeros in on properties in the West Coast in the San Francisco Bay Area, Seattle and Los Angeles.

Embarcadero Capital will be looking for deals that are considered to be value-add or opportunistic assets in its targeted markets. Most of its transactions will be with existing assets, while some deals for the fund could include new development opportunities.

Embarcadero Capital is active in many markets around the San Francisco Bay Area. As stated on its web site, the properties in which the company has investments include San Francisco, Sunnyvale, San Jose, Oakland, Pleasanton, Milpitas, Mountain View, San Bruno, Palo Alto and Menlo Park. The real estate investment firm currently owns a portfolio of 37 buildings totaling 3.4 million square feet.

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