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Convergent Capital raises $40m for opportunistic real estate investment

10 Dec 2013

Real estate private equity firm Convergent Capital Partners has closed its CCP Fund I on $40m.

With the use of leverage, the opportunistic commercial real estate-focused vehicle will be able to invest up to $125m over the next three years, the firm said.

Tampa, Florida-based Convergent said it will focus on value add, adaptive reuse, and opportunistic investments in commercial real estate and commercial real estate related financial instruments, which is consistent with its acquisitions over the past five years. Targeted asset classes will include office, retail, hospitality, and multifamily properties in the Southeast and Midwest.

Nik Sachdev, managing director, Convergent, said. “With this fund, we will continue to have the flexibility to pursue both small, niche properties that are overlooked by institutional capital, yet still engage in larger acquisitions with joint venture partners, whom we already have investment experience with.”

Convergent has already made its first investment in the Fund, acquiring an office building in Oak Brook, Illinois, for $8m. “We are very bullish on the Chicago market, and were able to make a great long term investment significantly below replacement cost, in a very strong suburban office market. We continue to look for opportunities to build our portfolio in the Chicago market” added Santosh Govindaraju, managing director for Convergent.

Since October 2008, Convergent has acquired retail, office, hotel, residential, and mixed use assets real estate assets involving over $400m of commercial mortgage debt and commercial real estate. The firm makes direct equity, joint venture equity, and debt investments for recapitalisation of debt, value-add transactions, and real estate development.

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