PHILADELPHIA – New Jersey-based private equity real estate firm Lucern Capital Partners has launched a real estate mutual fund focused on multi-family and mixed-use investments in the Philadelphia metropolitan area.
The Lucern Philadelphia Value Fund I LP is targeting a minimum capital commitment of $ 25 million with a targeted deployment of $ 75 million in leverage assets.
Lucern Capital Partners has been operating in the Philadelphia area for a decade.
The company most recently acquired the Del Campo Apartments in the Northern Liberties neighborhood of Philadelphia in late 2019 and carried out a multi-million dollar renovation and renaming. The company plans to use a similar strategy for the fund's acquisitions.
The fund's first acquisition is expected to close in early November.
"We are pleased to continue our strong performance in the Philadelphia market," said Frank Forte, Managing Partner and Chief Investment Officer of the Managing Partner and Chief Investment Officer of Lucern Capital Partners. “Philadelphia's history continues to improve every year and the data supports the long-term expansion of the rental market. With consistently strong wage and employment growth and one of the highest concentrations of millennials from big cities in America, the Philadelphia rental market is poised for long-term structural tailwinds that support our investment thesis. "
Forte continues: “While widespread reports of large city tenant exodus as a result of COVID-19 are exaggerated, cities like Philadelphia are well positioned to capitalize on teleworking / remote employment trends. We continue to see applicants in our buildings who have left New York City or New Jersey's Gold Coast and are fascinated by the lower cost of living in Philadelphia, the vibrant food and nightlife scene, and the easy access to other major Northeast cities. "