SRC’s planned second fund has a target raise of $50 million and, according to Ellis, attracting investors is not the problem.

Investor interest in a second SRC fund “is overwhelming but there’s no reason to call capital on that, there’s no reason to start deploying capital, and there’s no reason to start charging a management fee when I’m not deploying it,” said Ellis. “Until I find a reason to deploy that capital I’m not going to officially launch [the second fund]. I’m not going to start actively raising the money. My anchor is set and until I can come with an acquisition or two there’s just no reason to get busy.”

When SRC’s second fund launches, it will look to acquire eight to 10 properties. Beyond the larger portfolio of assets and capital raise, Ellis does not plan to change anything about his strategy.

“Going forward, it’s going to be very interesting. It’s an asset class that people have accepted and shown great interest in as far as a real estate diversification,” said Ellis. “It’s been a great thing for us.”

 

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