Washington, D.C.-based Penzance closed its first real estate private equity fund at $255 million.

The Penzance DC Real Estate Fund LP plans to target value-add investments in residential and commercial properties and mixed-use development in the D.C. area, with a target total capitalization for the fund of $800 million to $1 billion.

A mix of endowments, foundations and family offices invested in the fund, which will invest directly or as a general partner in joint ventures.

The fund has used 20% of the equity to acquire two assets, including a 17,398-square-foot, 100%-leased office building at 1680 Wisconsin Ave. in the Georgetown submarket of Washington and an interest in the to-be-built The Highlands mixed-use development in the Rosslyn submarket of Arlington, Va. The development will feature three high-rise towers totaling 1.2 million square feet with 780 rental units, 104 condominium units and 40,000 square feet of retail.