LA’s Redcar Secures $418M for Office Conversion Fund
Package will be used to buy underperforming industrial properties to convert into creative offices
By Greg Cornfield April 20, 2023 8:20 pm
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Redcar Fund Management announced it has closed on $418 million in equity commitments, which will be used to expand its warehouse-to-office conversion strategy in Los Angeles and into Texas.
The privately held Santa Monica, Calif.-based company will use the new financing package, Redcar Fund II, to continue buying and transforming underperforming industrial properties into creative office space. While the first fund — the $412 million Fund I — focused exclusively on L.A. real estate, Redcar Fund II includes a co-investment sidecar that will help capitalize the firm’s expansion into Austin, Texas.
Investors in Redcar Fund II and the co-investment sidecar include endowments, asset managers, private pensions, public pensions, family offices, insurance companies, wealth managers, and high-net-worth individuals in North America, the Middle East and Europe.
Redcar focuses on low-rise creative spaces, in contrast to conventional high-rise office buildings. Via Fund I, which closed in January 2020, Redcar acquired 15 assets which will total 1.4 million square feet upon completion in Culver City, Santa Monica, Silver Lake, Frogtown and Chinatown.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
