TriGate Capital Closes Fund Above Target, at $324M

TriGate Property Partners II L.P. has closed at $324.2 million, above its target raise of $300 million.

TriGate Property Partners II L.P. has closed at $324.2 million, above its target raise of $300 million, it was announced Monday by real estate placement and advisory firm Park Madison Partners, of New York, which handled the lead fund-raising for the fund.

TriGate Capital L.L.C., of Dallas, is a real estate private equity firm that focuses on acquiring real estate secured debt, providing capital for asset and company recapitalizations, and acquiring real estate assets where there’s potential to add value. The company manages two fully discretionary real estate funds, TriGate Property Partners, L.P. and TriGate Property Partners II, L.P.

The latter fund’s legal advisor was Jones Day.

The fund was established in July 2012, and investors include public pension plans, private foundations and individuals, Jay Henry, managing member of TriGate Capital, told Commercial Property Executive. He added that so far about 20 percent of the $324 million has been invested.

“The fund seeks to acquire well-located value-add real estate opportunities in order to execute a plan to improve the property through renovation and lease up,” Henry said. “The fund also invests in distressed mortgages in order to gain control of the collateral and similarly create value.”

“The fund-raising environment continues to be challenging,” Suzanne West, founding partner of Park Madison Partners, told CPE.

TriGate’s success, she said, comes from the comprehensive track record of its principals and from “having acquired over $10 billion in assets, representing close to $2.0 billion in invested equity (exclusive of any partner co-investments).”

West highlighted TriGate’s founding partners’ broad experience, which includes senior roles at top-tier real estate investment management firms (CEO of debt workout business and CEO of real estate operating company), with expertise in structuring, financing and managing real estate investments; risk management; real estate debt investment and workouts; and real estate operations, development, redevelopment and asset management.

“Investors recognized that distressed loan purchases require sophisticated workout skills, given the complex capital structures implemented in the mid-2000’s,” West said. “Teams must be able to appropriately underwrite risks, including potential bankruptcy filings, plus they must be able to orchestrate efficient solutions to complex restructuring situations.”