Lyndhurst, Ohio-based Legacy Capital Partners has reached a final close on its second fund, rounding up a total of $47 million (€31 million) in commitments.
Legacy Capital Partners Fund II has already co-invested with the firm’s initial fund, in a US senior-housing project and office portfolio, according to a statement.
The assisted-living scheme was a joint venture with Denver’s MGL Partners, first announced in September 2007, in which Legacy Capital invested more than $7 million to renovate and redevelop The Residences complex at Boulder Creek. Fund II will also co-invest with the prior fund to acquire an existing office portfolio in northeast Ohio, information on which was not available.
Limited partners for both funds were exclusively high-net worth individuals, with Fund I closing in 2004 on $44 million. Fund I has since invested in 10 real estate projects including commercial, industrial and residential real estate including student and senior rental apartments.
David St. Pierre, who co-founded the firm with Mitchell Schneider in 2004, said Legacy Capital’s strategy of raising funds for long-term investments, with holding periods of up to 15 years, was succeeding.
“Our first fund closed very quickly,” said St Pierre, Legacy Capital’s president. “What we introduced as a new approach to equity investing has been extremely well received, which encouraged us to go ahead and put together our second fund.”
St Pierre added that Legacy Capital Partners was intent on “ground-up” developments including the substantial redevelopment of existing assets which capitalize on recurring cash flow and long-term appreciation.
“Real estate is a long-term asset, yet the vast majority of the equity capital providers in the industry are focused on short-term investment strategies. Our belief is that, over time, good things happen to good real estate.”