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FSC Announces Fund Close with $40 Million Equity Raise

Posted on July 15th, 2020

Winston-Salem, NC – Front Street Capital (FSC) is pleased to announce the close of its latest real estate fund with equity commitments exceeding $40 million for Front Street Properties Fund II, LP (Fund II). The final close date was June 30, 2020. This Fund represents the second dedicated vehicle of its kind for FSC, with investments in Class-A commercial real estate assets across the Southeast. Capital commitments were secured from a wide range of limited partners during a capital raise period that lasted from the second quarter of 2018 through the second quarter of 2020.

“We were fortunate to secure commitments from a very diverse set of limited partners, representing the individual, institutional, corporate, and not for profit investor sectors. We are especially proud of the fact that we exceeded our fundraise goal of $35 million and more than doubled the size of our capital raise from Front Street Properties Fund I” said Matt McInnis, Partner with Front Street Capital.  

During the fundraise period, the General Partners invested approximately $27 million of the capital raised into assets totaling over 500,000 square feet, with a total value greater than $90 million. Those transactions include:

-    Bailey South: a mixed-use development in Winston Salem, NC (75,000sf)

-    Brookfield Corporate Center: a two-asset corporate office portfolio in Greenville, SC (242,000sf)

-    Hub & Catalyst: a three-asset creative office portfolio in Peachtree Corners (Atlanta), GA (200,000sf)

“We are thrilled with the results of this capital raise, and we are very excited about the prospects of Fund II. Our Fund platform was created to meet growing investor demand for institutional quality real estate investments in our target markets, predominately in the Carolinas, but also across the southeastern United States. We feel very strongly that Fund II is positioned to outperform alternative investment options for our limited partners” said Coleman Team, Partner with Front Street Capital.

FSC anticipates acquiring additional properties over the next 18 months with the remaining undeployed capital committed to Fund II.

In addition to FSC’s private equity division, the firm is responsible for ground up development and asset management across the Carolinas. The company has a 35+ year track record of placing nearly $150 million of investor equity into real estate transactions across the office, industrial, healthcare and mixed-use asset classes. 

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Media Contact:

Coleman Team, Partner, Front Street Capital, Coleman@frontstreetcapitalnc.com, +1.336.250.2977

About Front Street Capital 

Front Street Capital (www.frontstreetcapitalnc.com) is a full-service development, asset management and private equity real estate company built by industry leading professionals with a drive to produce consistent, income-driven results. Over our history, Front Street Capital has developed or acquired nearly $500 million in income-producing assets across the office, industrial, healthcare, and mixed-use asset classes.