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Broadway closes its second fund on $590m

The New York City-based private equity real estate investor has raised $590m for its second vehicle focused on the North American office market.

Broadway Partners has closed its second private equity real estate fund on $590 million (€445 million), nearly three times the size of its previous vehicle.

Fundraising began last fall and more than half the total capital was in place by August. The firm has already closed on three assets for the fund, including the landmark Rookery building in Chicago, 10 Post Office Square in Boston and 522 Fifth Avenue in New York.

The closing of the fund comes after a busy fall for the firm. Late last month, it announced the acquisition of One City Centre, a 591,000 square foot office building in downtown Houston, for $115 million. The building, which was reportedly one of the first skyscrapers built in the city, sports two parking garages and has an occupancy rate near 90 percent.

At the same time, Broadway announced it was expanding its roster with the appointment of Douglas Harper as its managing director of institutional marketing. Harper was formerly the director of the account management group at private equity real estate firm BlackRock Realty.

“He has tremendous experience in the institutional fundraising arena already,” Charles Millard, president of Broadway, told PrivateEquityRealEstate.com at the time. “As we look to raise future funds, we think he’ll make a great impact on our organization.”

In October, the firm acquired a 10-building portfolio of office buildings in major US cities for $3.4 billion. The portfolio, which was sold by Boston-based Beacon Capital Partners, includes the John Hancock Tower in Boston, three additional buildings in the city, four in Los Angeles, two properties in Washington DC and the Bank One Tower in Denver.

Broadway was founded in 1999 by former Fortress Investment Group pro Scott Lawlor. In 2005, Broadway closed its first fund on $210 million.