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Real Capital Solutions launches $350M distressed office acquisition fund
The fund targets distressed Class A and Class B offices nationwide and plans to ultimately buy up to $850 million of assets after raising $350 million.
Real Capital Solutions, a Colorado-based real estate investment firm, has launched a $350 million fund to buy distressed Class A and Class B office properties across the U.S., Commercial Observer reports. The vehicle is called the RCS Contrarian Office Fund, and it is designed to lever up and ultimately acquire up to $850 million of office assets from the capital raised.
The fund is already backed by $50 million from founder and CEO Marcel Arsenault and an additional $47.5 million commitment from an unnamed entrepreneur, Commercial Observer adds. Arsenault said in a statement that, even as the office market resets, he sees a strong long-term outlook for premier office assets because companies still need high quality workplaces to attract tenants and support growth.
Commercial Observer notes that since 2024, RCS has invested $644 million to acquire 14 office properties in 10 U.S. markets. Reported deals include the Equitable Building in Chicago, a 35 story Class A tower acquired earlier this year for $132.5 million, or a 77.8 percent discount to replacement cost.
RCS chief investment officer and managing director Adam Abeln attributed the firm’s activity to a contrarian approach where pricing can diverge from market fundamentals. He said the fund has identified potential targets in at least 15 markets, with the thesis that different markets are at different points in the cycle, creating opportunities as some are still under downward pressure while others show recovery stage fundamentals.