DALLAS--(BUSINESS WIRE)--State Of Texas Real Estate Fund, LP (STXRE) announced today its intent to raise $150 million for commercial property acquisitions in Texas.
STXRE will primarily target high quality distressed office, industrial and raw land in Austin, Dallas, Houston and San Antonio. Mark Jordan and Kevin White, Managing Directors of STXRE, bring a long and successful history to the fund. Mark Jordan is owner of JP Realty Partners Ltd and Sooner National Property Management LP. He has completed over $700 million in real estate transactions and has over 20 years of Texas real estate experience. Kevin White is CEO of KGW Real Estate and KGW Capital Management. He managed over $300 million in international client investments and has 14 years of Texas real estate experience.
“Texas is clearly leading the national recovery. The Texas economy is growing at a rate of 4 percent a year – four times as fast as the rest of the country. For this reason, we will focus our expertise in Texas,” said Mark Jordan. Texas cities took the top five spots on a recent Forbes ranking of Best Cities For New Jobs. Last year Houston alone added 260,000 jobs. In the same period, greater New York City, with nearly 3 times the population of Houston, added only 96,000 jobs.
STXRE will follow in the footsteps of previous successful funds. “STXRE will focus on a niche that is overlooked by most institutional investors. We’re not buying the fully leased buildings that are being chased and bid-up by everyone. We’re buying great properties that are in distress. We then improve occupancy and sell within 2-3 years. This is a pure capital gain play and that successful formula is the reason for our IRR performance in the past. We expect that STXRE will deliver to investors an IRR of 20 – 22% after expenses,” said Mark Jordan.
STXRE already has serious inquiries from foreign investors. “We are talking to investor groups throughout the U.S, Asia and Europe. The weakening dollar has given foreign investors leverage in purchasing U.S. real estate. Last year alone, the Chinese yuan strengthened 3.3% against the U.S. dollar,” said Kevin White.
STXRE is an investment fund. STXRE website is www.stxre.com.