Morrison Street raises $200m for latest fund

The Portland, Oregon-based firm made 21 mezzanine investments from the fund so far.

Morrison Street Capital has held its final close of its mezzanine real estate debt and equity fund on $200 million, the company’s advisor, Accord Capital Partners, said on Tuesday.

The San Francisco-based firm’s Morrison Street Debt Opportunities Fund hit its original fundraising target, according to a statement. The fund garnered capital from 328 investors with a minimum investment of $500,000, a filing with the US Securities and Exchange Commission shows. The fund made its first sale in October 2015.

Capital came from undisclosed investors from US and Europe, the majority of which were investors in previous Morrison Street funds, the statement reads.

The Portland, Oregon-based company has made 21 mezzanine investments so far out of the fund, representing approximately 66 percent of the fund’s total commitments.

The firm did not respond to request for comment.

The Spokane Employees Retirement provided a $5 million commitment to the fund, PDI data shows. SERS previously invested in Morrison Street Fund IV and Fund V, according to pension fund documents.

MSDO provides mezzanine debt, B-notes, or preferred equity, ranging from $2 million to $10 million to stabilised properties in the largest metropolitan areas in the US, the statement reads. MSDO does not use fund-level leverage.

The firm’s mezzanine and B-note products are fixed and floating rate with a target return range of 10-13 percent, according to its website. These products have floating-market fee structure and a maximum loan-to-value of 85 percent.

The firm’s most recent predecessor mezzanine and equity fund, Fund V, is currently invested in a portfolio with a total $390 million, the firm’s website shows. That fund launched January 2014, while the first Fund I launched in 2003.

Accord Capital Partners, along with its affiliate Accord Europe, serve as exclusive global capital advisor to Morrison Street, according to its statement.