With a hefty pipeline of projects in the works, D.C.-based Quadrangle Development Corp. is once again turning to the private equity market for financing.
The privately held firm, which developed such high-profile projects as the Shops at National Place in D.C. and the mixed-use Towers Crescent in Tysons, is seeking to raise $275 million through its recently established National Capital Properties VI LP fund, according to a Form D filing with the U.S. Securities and Exchange Commission. It is the sixth fund Quadrangle has set up over the past two decades for the purpose of buying and developing properties in greater Washington and first since 2015, according to Securities and Exchange Commission filings.
The company didn't respond to a request for comment. Quadrangle president Christopher Gladstone and vice president Elise Rabekoff are named as officers in the fund, which will offer both equity and pooled investment fund interests. The SEC accepted the filing May 31, but the fund has not yet begun raising money.
The filing doesn't indicate a specific required minimum investment. Historically, though, Quadrangle has raised funds from endowments, foundations, charitable organizations, family offices and high-net-worth individuals. The fifth fund, for instance, raised $187 million from just eight sponsors, according to Form D filings.
Quadrangle is involved in string of investments and projects across the region. Last month, it and partner Capstone Development were cleared to acquire the land beneath the Marriott Marquis Washington, D.C., which they developed a decade ago, for $100.7 million. It, Capstone and D.C.-based developer Edens are also planning to break ground next year on new home for Howard University's National Research Center for Health Disparities.
In an analysis earlier this year, Morgan Stanley said that U.S. real estate investment funds are generally performing well but that returns have been uneven. Logistics and multifamily properties are generating strong returns for investors while returns on office properties have been weaker. Still, Morgan Stanley predicted that ample availability of credit and a limited supply of new development could still favor private equity in the near term.
