Key Takeaways
- • NAI/Merin Hunter Codman principals Neil Merin, Jordan Paul, and Dung Lam, along with investor Joseph Sprouls, are closing MHCommercial Real Estate Fund with plans to deploy $150 million to $200 million across Southeastern U.S. commercial real estate markets.
- • The fund has secured commitments from more than 50 limited partners including high net-worth individuals and family offices, with the majority of the $25 million fundraising target already committed as of September 2019.
- • Investment strategy focuses on stable, cash-flowing properties across office, retail, industrial, and multifamily sectors in North Carolina, South Carolina, Georgia, and Florida, with bid activity ranging from $10 million to $80 million per asset.
- • Joseph Sprouls, former global head of commercial real estate services for Citigroup and MetLife, and Corey Winsett, ex-Torchlight and LNR Property asset manager, lead acquisition and asset management functions for the fund.
- • NAI/Merin Hunter Codman has accumulated $300 million in commercial real estate acquisitions over the prior five years, with management signaling plans to launch a significantly larger fund following this vehicle's close at year-end 2019.
Summary
NAI/Merin Hunter Codman has closed fundraising for MHCommercial Real Estate Fund, a Southeastern U.S. focused commercial real estate vehicle targeting $150 million to $200 million in total deployment. The fund has attracted more than 50 limited partners comprising high net-worth individuals and family offices, with the majority of commitments received against a $25 million fundraising target. Fundraising commenced in April 2019 with an official close scheduled for year-end 2019.
The fund's investment thesis emphasizes core-plus and stabilized assets during a cycle characterized by limited value-add opportunities. Geographic focus concentrates on North Carolina, South Carolina, Georgia, and Florida, with primary exposure to office and retail properties and secondary exposure to industrial and multifamily assets. The team has demonstrated active acquisition appetite across multiple scales, having submitted bids on properties ranging from $10 million to $15 million and $50 million to $80 million.
NAI/Merin Hunter Codman principals Neil Merin, Jordan Paul, and Dung Lam are joined by Joseph Sprouls, whose background includes serving as global head of commercial real estate services for Citigroup and MetLife. Corey Winsett, previously an asset manager at Torchlight and LNR Property, assumes the role of director of acquisitions and asset management. The sponsorship team has established operational credibility through $300 million in commercial real estate acquisitions over the five-year period preceding fund formation. Management has flagged intentions to raise a significantly larger follow-on fund, indicating confidence in market conditions and institutional investor demand for their investment approach.
The fund's investment thesis emphasizes core-plus and stabilized assets during a cycle characterized by limited value-add opportunities. Geographic focus concentrates on North Carolina, South Carolina, Georgia, and Florida, with primary exposure to office and retail properties and secondary exposure to industrial and multifamily assets. The team has demonstrated active acquisition appetite across multiple scales, having submitted bids on properties ranging from $10 million to $15 million and $50 million to $80 million.
NAI/Merin Hunter Codman principals Neil Merin, Jordan Paul, and Dung Lam are joined by Joseph Sprouls, whose background includes serving as global head of commercial real estate services for Citigroup and MetLife. Corey Winsett, previously an asset manager at Torchlight and LNR Property, assumes the role of director of acquisitions and asset management. The sponsorship team has established operational credibility through $300 million in commercial real estate acquisitions over the five-year period preceding fund formation. Management has flagged intentions to raise a significantly larger follow-on fund, indicating confidence in market conditions and institutional investor demand for their investment approach.
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