New York-based LCN Capital Partners raised $1.35 billion in equity commitments, building on its private real estate hybrid investment strategy of originating and structuring sale-leaseback and build-to-suit investments with corporate owner-occupants.
The U.S. dollar-denominated LCN North American Fund III raised $635 million, while the Luxembourg-domiciled offering raised €600 million ($715 million), exceeding their respective targets of $500 million and €500 million.
The LCN team has collectively completed more than 250 sale-leaseback and build-to-suit investments exceeding $12 billion in cost. Headquartered in New York, NY, LCN also has offices in London, Amsterdam, Cologne and Luxembourg.
The funds, the third such paired offering for the firm, are invested across all industry sectors and commercial property types in North America and Europe. The credit-based leases negotiated along with the security of corporate real estate ownership allows for an investment that produces inflation protected quarterly distributions, according to LCN.
“Our third pair of distinct sale-leaseback funds are LCN’s largest raised to-date, having closed at their hard caps despite the disruption of COVID-19,” said Edward LaPuma, co-founder and managing partner of the $5 billion firm. The funds received capital commitments from existing and new investors including pension funds, insurance companies, foundations and multi-family offices across three continents and nine countries. All of the firm’s previous institutional partners re-upped their commitments to LCN.
According to LaPuma, LCN has continued to develop its existing team, expanding its origination reach by adding offices around the globe. Officials are currently recruiting for various new positions.
Funds III are already significantly invested across North America and Europe. The investment committee, made up of Founders LaPuma and Bryan York Colwell, has direct engagement with all of the firm’s transactions that allows for a degree of certainty and speed of closing and preserves confidentiality for the corporate tenant clients.
“These abilities have led some of the world’s best known corporate names to partner with LCN for their sale-leaseback and build-to-suit transactions, some for multiple transactions,” said Colwell. “Since inception 10 years ago. LCN has distinguished itself as a reliable, long-term capital partner for our global tenant-clients who are seeking alternate liquidity sources to effectively manage their businesses.”
LCN North American Fund II L.P., and LCN European Fund II SLP closed in 2017 with approximately $750 million in capital commitments, and LCN North American Fund, L.P., and LCN European Fund FCP-SIF closed in 2014 with approximately $450 million in capital commitments.