By Jon Peterson
San Francisco-based Swift Real Estate Partners has committed $168 million of equity into purchases for its Swift Real Estate Partners Fund I commingled fund. The real estate firm closed the capital raise earlier this year with a total equity raise of $330 million.[contextly_sidebar id=”622f8ccd2440a5b6ed42efb506cd8fa4″]The deals to which it has commitments are a combination of four closed transactions and five others that are under contract and will be closing within the next 60 days. The properties that will be closing shortly include a medical office deal in Daly City as well as office buildings in Portland and in the San Francisco Bay Area.
“We have been pleased with the success we have had in the marketplace. We started the investment process for deals in the fall of last year,” says Christopher Peatross, president of Swift Real Estate. Fund I, which is the company’s first fund and was initially targeted for $250MM in equity, does have a three-year investment period.
Swift Real Estate’s most recent closing occurred this week. This was the $16 million acquisition or $400 per square foot to buy the 40,000 square foot Foster City Medical Pavilion medical office building located at 1241 East Hillsdale Boulevard in Foster City.
“The value-added component of this property is that it’s now only 50 percent occupied. We think that we should be able to lease up much of the empty space. With many of the changes in medical care programs, more independent groups are looking for space near hospitals. We also have a good understanding of the marketplace in San Mateo through other properties we have owned in the area,” said Peatross.
The asset in Foster City was sold by the San Francisco office of Trammell Crow, which was represented in the sale by CBRE. The listing agent on the sale was Chris Bodmar, a senior vice president in the company’s Denver office. He works in the company’s healthcare capital markets group.
The property in Foster City is near Highways 101 and 92. According to the Trammell Crow Web site, the property is near many hospitals on the Peninsula. These include Mills Peninsula in San Mateo and Burlingame, Sequoia Hospital and Kaiser Permanente in Redwood City, Stanford University Medical Center and Lucile Packard Children’s Hospital in Palo Alto, Seton Medical Center in Daly City, Kaiser Permanente in South San Francisco and San Mateo County Medical Center.
Swift has a planned total capitalization of around $1 billion for Swift Real Estate Partners Fund I. There will be around 65 percent debt placed on the fund. It has a value-added investment strategy for the purchase of a mixture of office and industrial assets on the West Coast spanning from Seattle to San Diego.