Devereux President & CEO Announces Formation of a New Private Real Estate Fund
Monday, February 4, 2013 at 12:34PM
Devereux Management

Devereux President & CEO Dewitt H. Smith III will serve as CEO and co-founder of a new private real estate company made up of Arkansas business leaders.

CapRocq Core Real Estate Fund, L.P. (CapRocq Core), formed with an initial capitalization of $50 million, will focus on acquiring assets throughout the Midwest and Southeast regions of the country. The founders of the fund anticipate adding additional investors with a final closing expected in the first half of 2013.

"The market conditions are right for a seasoned real estate team to outperform by catering to the underserved secondary markets with solid economics," said Smith. "To launch such a venture from our home state with an Arkansas-based team is particularly gratifying to everyone associated with the endeavor."

At the initial closing, CapRocq Core completed two significant acquisitions in Lowell, Ark., and Columbia, SC. The Northwest Arkansas acquisition included a five-building office portfolio consisting of 162,500 square feet, while the South Carolina acquisition included a two-building, suburban office campus of 157,000 square feet.

"We are excited to launch one of the largest ever private real estate funds in Arkansas," said co-founder and chief operating officer Kevin Huchingson. "Our focus will be on building a high-quality, diversified real estate portfolio with properties throughout America's heartland. We believe we will be able to deliver exceptional value to our investors while providing an attractive yield."

Smith, Huchingson, Franklin McLarty and Ted Dickey are co-founders of CapRocq Core. They have a combined 77 years of commercial real estate experience and a history of more than $1 billion in combined real estate transactions. Smith will lead the day-to-day operations of the fund, while Huchingson and Dickey will serve as chief operating officer and chief financial officer, respectively. McLarty is a principal of the fund. Smith will also continue overseeing the day-to-day operations of Devereux Management Co. 

"We can all be proud that a venture of this type is coming together in our home state," said Thomas F. "Mack" McLarty, who is serving on the fund's advisory board along with Dickson Flake. "It's a testament to the positive business climate in Arkansas and the South, and I look forward to supporting CapRocq Core's first-class, contemporary team as they build meaningful value for our investors."

CapRocq Core's investor base will be largely comprised of leading Arkansas-based institutions and accredited individual investors. Colliers International-Arkansas will serve as the exclusive real estate broker and advisor to CapRocq Core. Other Arkansas institutions that have helped with the formation of the fund include Friday, Eldridge & Clark and JPMS Cox.

About CapRocq Core
CapRocq Core Real Estate Fund, L.P. is an asset management company focused on origination, underwriting, acquisition and oversight of commercial real property located in selected secondary markets throughout the Midwest and Southeast regions of the United States. CapRocq Core will focus on stabilized properties in markets that have stable diversified economies. CapRocq Core provides value to its investors through regular dividends and strategic sales of its portfolio properties. CapRocq Core and CapRocq Automotive, LLC ("CapRocq Auto") are free standing, independent units of the CapRocq family of funds.
 

Article originally appeared on Devereux Management Company (http://www.devereuxmanagement.com/).
See website for complete article licensing information.