Washington investment firm Meridian Group recently closed the deal on its first real estate private equity fund with over $160 million in discretionary capital from investors. The money can be leveraged to buy property worth more than $500 million in the metropolitan Washington D.C. area.
The 20-year-old Bethesda-based investment firm’s fund is one of the few discretionary real estate funds launched in the U.S. since the beginning of the financial crisis. The company has said it appreciates the confidence investors have shown during this period of economic uncertainty.
Meridian has already spent capital from its new fund. The company has bought over 500,000 square feet of office space in North Virginia. The purchase includes the Tysons Technology Center in Tysons Corner, which measures 280,000 square feet.
Meridian has acquired 7.4 million square feet in hotel, office, industrial and retail properties since it opened its doors for business in 1993. Its portfolio of properties, which is valued at $2.5 billion, includes numerous properties together with 439 acres of land.
In September, Meridian sold what was known as its flagship asset, 3 Bethesda Metro Center, to Brookfield Properties for $150 million. The 365,000-square-foot office building is located above the Bethesda Metro.
Meridian has achieved a good return on investments by selectively investing in Washington real estate over the past 20 years. The company president, David Cheek, said recently that he looks forward to continued success with the new fund.
The market in the Washington, D.C. area is expected to recover over the next several years and the company is in a good position to achieve its goals as conditions improve.
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