The Davis Companies Completes Fundraising for Fourth Fund


OFFICIAL PRESS RELEASE:

Davis Investment Ventures Fund IV raises over $777M, exceeding $650M goal  

BOSTON, September 30, 2020 – The Davis Companies announced today the closing of its latest value-add real estate fund, Davis Investment Ventures Fund IV, LP (DIV IV), with total equity commitments of US $777.5 million, significantly exceeding its original fundraising target of $650 million.  Commitments were made by a diverse group of limited partners, including public pension plans, insurance companies, endowments, foundations, family offices and high net worth investors. Park Madison Partners acted as the exclusive institutional Placement Agent on behalf of DIV IV.

“We are extremely grateful for the strong support that we have received from our limited partners, including both long standing and new investors,” said Jonathan Davis, Davis Companies Founder and CEO. “We plan to continue to bring to bear our core strengths in deploying Fund IV’s capital — our fully integrated operating platform focused on identifying and realizing on hidden value and market inefficiencies across economic cycles, our proven ability to capitalize on distress in downturns and our focus on markets where demand is driven by knowledge, innovation and positive demographic trends — to identify attractive investment opportunities for our investors.”

Quentin Reynolds, Davis Companies CIO, added, “We will be patient in deploying capital but are ready to invest as we identify compelling opportunities. Within our target markets, we remain hyper-focused on investments in life science, industrial, self-storage and multifamily properties. We also see opportunities to take advantage of distress, primarily through debt investments, where we have a long and successful track record.”

To date, the Fund has made seven investments, with equity commitments totaling approximately $165 million. The portfolio currently consists of a 17.8-acre last mile distribution development in Everett, MA, apartment development sites in two of Boston’s rapidly emerging neighborhoods, a self-storage development in Manhattan’s Chelsea neighborhood, a multifamily development in the Lake Norman neighborhood of Charlotte, NC and a student housing development in Athens, GA, home to the University of Georgia.  The Fund has also invested in a portfolio of 10 high-quality, well-protected mezzanine loans and several discounted CMBS positions.


The Davis Companies Completes Fundraising for Fourth Fund, With Equity Commitments of $777.5 Million

September 30, 2020 | by Boston Real Estate Times

Jonathan Davis, CEO & Founder of The Davis Companies

BOSTON – The Davis Companies announced the closing of its latest value-add real estate fund, Davis Investment Ventures Fund IV, LP (DIV IV), with total equity commitments of US $777.5 million, significantly exceeding its original fundraising target of $650 million.

Commitments were made by a diverse group of limited partners, including public pension plans, insurance companies, endowments, foundations, family offices and high net worth investors. Park Madison Partners acted as the exclusive institutional Placement Agent on behalf of DIV IV.

“We are extremely grateful for the strong support that we have received from our limited partners, including both long-standing and new investors,” said Jonathan Davis, Davis Companies Founder and CEO. “We plan to continue to bring to bear our core strengths in deploying Fund IV’s capital — our fully integrated operating platform focused on identifying and realizing on hidden value and market inefficiencies across economic cycles, our proven ability to capitalize on distress in downturns and our focus on markets where demand is driven by knowledge, innovation and positive demographic trends — to identify attractive investment opportunities for our investors.”

Quentin Reynolds, Davis Companies CIO, added, “We will be patient in deploying capital but are ready to invest as we identify compelling opportunities. Within our target markets, we remain hyper-focused on investments in life science, industrial, self-storage and multifamily properties. We also see opportunities to take advantage of distress, primarily through debt investments, where we have a long and successful track record.”

To date, the Fund has made seven investments, with equity commitments totaling approximately $165 million. The portfolio currently consists of a 17.8-acre last mile distribution development in Everett, MA, apartment development sites in two of Boston’s rapidly emerging neighborhoods, a self-storage development in Manhattan’s Chelsea neighborhood, a multifamily development in the Lake Norman neighborhood of Charlotte, NC and a student housing development in Athens, GA, home to the University of Georgia.  The Fund has also invested in a portfolio of 10 high-quality, well-protected mezzanine loans and several discounted CMBS positions.

 


The Davis Cos. Secures $778M for Value-Add Real Estate Fund

September 30, 2020 | by David Cohen, Connect Boston

Boston-based real estate investment, development and management firm The Davis Cos. has announced the closing of its latest value-add real estate fund, Davis Investment Ventures Fund IV, LP. The fund secured total equity commitments of $777.5 million.

Commitments were made by a group of limited partners, including public pension plans, insurance companies, endowments, foundations, family offices and high net worth investors. Park Madison Partners acted as the exclusive institutional Placement Agent on behalf of DIV IV.

The Fund has made seven investments to date, with equity commitments totaling approximately $165 million. The portfolio currently consists of a 17-acre distribution development in Everett, MASS, apartment development sites in two of Boston’s rapidly emerging neighborhoods, a self-storage development in Manhattan’s Chelsea neighborhood, a multifamily development in the Lake Norman neighborhood of Charlotte and a student housing development in Athens, GA.


DAVIS TOPS GOAL, CLOSES BIGGEST FUND

September 30, 2020 | by Real Estate Alert

Davis Cos. has finished raising equity for its largest value-added fund, a $777.5 million vehicle that easily exceeded its initial target.

The Boston operator held a final close in the past week for Davis Investment Ventures Fund 4. The marketing campaign launched in May 2019 with an equity goal of $650 million and a ceiling of $750 million.

The shop’s background in distressed investing likely helped draw additional commitments in light of the coronavirus pandemic. Davis asked the fund’s investment advisory committee a few months ago for permission to exceed the ceiling, which delayed the final close.

The manager had held an initial close in August 2019 on roughly $365 million of equity. Davis also committed $32.5 million of its own equity to the vehicle.

Fund 4 is targeting a 14-16% return, primarily by redeveloping and repositioning properties across asset classes. It also does ground-up development and can invest in distressed debt.

The vehicle has a four-year investment period, giving it time to wait for a wave of distressed investments expected to emerge in the next few years.

With leverage, the fund will have some $2.5 billion of investment capacity. It has already deployed $165 million of equity in seven deals. Park Madison Partners of New York acted as the firm’s placement agent.

In addition to scouting for distressed opportunities, Davis will maintain its focus on investments in strong property sectors, such as life-science, industrial, self-storage and multi-family. It targets “knowledge and innovation markets,” including Atlanta, Boston/Cambridge, New York and Raleigh-Durham, and those with high growth rates.

“We continue to have high conviction about the long-term prospects of the knowledge-driven markets we’re focused on,” firm founder and chief executive Jonathan Davis said. “Markets where the cost of living and doing business is lower than it is in the Northeast, but where high-quality jobs continue to be created.”

In addition to the fund series, Davis this year formed a partnership with former Colony Capital executive Robert Gatenio to buy discounted commercial MBS and commercial real estate CLOs. That venture will also originate “gap equity financing,” which could take the form of mezzanine loans or preferred equity.

Including Fund 4, Davis now has raised just under $2 billion for its fund series. The shop’s largest previous vehicle was the $512 million Davis Investment Ventures Fund 3, which held a final close in 2016 and was fully invested last year.

About The Davis Companies

The Davis Companies is a 44-year-old, fully-integrated real estate investment, development and management firm based in Boston, MA. Since inception, the firm has invested across five market cycles, developed more than 8.5 million square feet, and owned more than 23 million square feet, representing more than $7.2 billion of transactions. The Davis Companies’ 10-person senior management team averages over 28 years of experience. The firm has a cross-disciplined team of 112 professionals with deep synergies to maximize performance and value.

For more information, please contact:

Steve Coyle 

Managing Director, Head of Investor Relations & Marketing

The Davis Companies

scoyle@thedaviscompanies.com

(917) 941-6922

Nancy Lashine  

Founder and Managing Partner

Park Madison Partners

nlashine@parkmadisonpartners.com

(516) 313-9778