New Boston Fund has established a $350 million closed-end, commingledfund to be called Fund VI. This is the sixth commingled real estate investment fund launched by the Boston-based full service real estate firm. The fund’s blended rate of return is in the 15% to 20% range.
"Fund Six follows five very successful commingled funds organized between 1993 and 2000 that have catered to a well balanced mix of affluent and institutional investors who are seeking current cash flow, superior overall returns, capital preservation and portfolio diversification," says President Jerry Rappaport.
Fund VI will pursue a balanced investment strategy combining a mix of core, value-added and deeply discounted acquisitions with selective risk-averse. The balanced strategy will allow the firm to create "a diverse portfolio that will generate a strong risk-adjusted rate of return," according to William McAvoy, chief investment officer.
The fund will target acquisitions priced below replacement cost that offer current cash-flow and long-term appreciation potential, especially properties between $5 and $70 million located in the northeastern U.S.
New Boston Fund’s portfolio boasts 12 million sq. ft. of commercial real estate valued in excess of $1.5 billion. The firm has maintained portfolio-wide occupancy of over 90%.