Beacon Capital Partners LLC raised $1.58 billion for its eighth real estate fund, along with a further $220 million in co-investment equity, making it the largest fund for the Boston-based private equity real estate firm since the global financial crisis, PERE News reported.
The California State Teachers' Retirement System and the State of Wisconsin Investment Board committed $300 million and $100 million, respectively, to Beacon Capital Strategic Partners 8, or BCSP 8, which reportedly held a final close in December 2018.
Beacon Capital launched the fund in May 2017 with a $1.25 billion target and subsequently raised it to $1.5 billion, with a $1.75 billion hard cap, the report noted.
The platform attracted investment from a variety of sources including U.S. and overseas pensions, sovereign wealth funds, endowments, financial institutions and foundations. More than 50% of investors are from the U.S., 25% from Canada, 13% from Asia, 6% from Europe and the balance from the Middle East.
BCSP 8 will invest in underperforming properties in Boston; New York; Washington, D.C.; Chicago; Denver; Los Angeles; San Francisco; Seattle; and Portland, Ore., to acquire and make capital improvements to increase leasing.
So far, the firm has deployed 17% of the capital accumulated for BCSP 8 to acquire 2445 M St. in Washington, D.C.; 303 E. Wacker in Chicago; 160 W. Santa Clara in San Jose, Calif.; and 800 N. Brand Blvd. in Glendale, Calif.