Esko Korhonen of Federal Capital Partners was in a bouncy mood last week as we munched lunch salads in the private equity firm’s second-floor conference room overlooking Friendship Heights.
For good reason.
Korhonen said FCP recently closed its second real estate fund — this one at $529 million — in early July after a year of fundraising by Korhonen and his team.
“We raised capital in an extremely tough market, and the fund was oversubscribed,” said Korhonen, who along with Lacy Rice left the Carlyle Group to found the firm in 1999.
FCP, whose four partners include Korhonen, Rice, former CarrAmerica Realty chairman Tom Carr and real estate veteran Alex Marshall, has $769 million in capital under management, which includes money invested and money it is waiting to invest.
The 34-person firm has $2.4 billion in real estate assets from Philadelphia to North Carolina, where its strategy is dictated by “feds, eds and meds” – short-hand for the federal government, universities and medicine/health research that dominates those markets.
“While the Washington-Baltimore metro area continues to be a primary focus, we have also expanded into new markets,” Korhonen said in a follow-up e-mail. “In new markets, we look for the building blocks for job generation and household formation — these markets tend to have major universities, strong technology industries and are populated by young, educated thought leaders ... places where innovation and creativity drive new jobs and businesses.”
He said his firm says “no” a lot as it looks for the right opportunity, whether it’s an office building, apartment complex, warehouse or mobile home park, which is a small but lucrative part of the portfolio that is politely referred to as “manufactured housing.”
FCP looks for cash-starved, undermanaged real estate assets where it can add value by investing in the building and improving the operations. In some cases, the firm takes old office buildings and turns them into rental properties.
The invitations are going out. Christopher Talvarides, owner of Capital Outdoor and an investor in Snag Films, and Jimmy Lynn, former head of AOL Sports, are hosting their premiere of “The Good Son” on Sept. 20 at the Italian Embassy. Their documentary is on the life of boxer Ray “Boom Boom” Mancini, and how he has coped with the death of Duk Koo Kim, the man he accidentally killed in the ring three decades ago.
Summit Consulting, which provides data analysis to federal government agencies and private-sector clients, has moved its 35 employees into 4,160 square feet at 718 7th St. NW in Chinatown, and is now neighbors with LivingSocial. The move represents a 43 percent increase in square footage, which helps accommodate the 15 people Summit hired last year. It plans to add another five by the end of the year. The firm expects $6.6 million in gross revenue this year, up from $4.0 million in 2011.
Falls Church-based communications firm ThinkDesign has merged with Moire Marketing Partners, located in the District and in California. ThinkDesign president Jim Garzione is now a partner at Moire.
Something was cooking in Houston last week, where Denise Medved and her team were planning an exhibit called Medved’s Metro Cooking Houston, which is scheduled for back-to-back weekends in Houston on Sept. 15 and 16 and in Dallas on Sept. 22 and 23. Last year’s Houston launch for the Annandale-based Metropolitan Cooking & Entertaining Show had more than 10,000 attendees.
London-based Yo! Sushi — known as the conveyor belt of sushi shops — is making its American Debut at Union Station July 25. The restaurants, which operate in the U.K., Middle East and Norway, are known for locating in mass transit centers, urban centers and high-end malls.
$12billion: The new market cap of American Capital Agency Corp., the Bethesda-based real estate investment trust that primarily invests in bonds issued by Fannie Mae and Freddie Mac. The company’s stock recently reached an all-time high of $35.58 per share, which prompted the REIT to sell $1.1 billion of new stock. The company has raised almost $4.5 billion of equity in the past year alone and is the second-largest mortgage REIT in the country. Gary Kain, a Washingtonian who was a long time Freddie Mac executive, is the firm’s president.