PCCP fundraise lags presumed first close

The real estate manager’s First Mortgage II fund had been expected to hold a first close in 2011, according to meeting materials. 

Real estate investment management firm PCCP has raised at least $212.2 million on a $500 million target for its First Mortgage II fund, according to US Securities and Exchange Commission documents filed earlier this month.  

The firm had been expected to hold a first close on approximately $250 million as early as the fourth quarter of 2011, according to Los Angeles Department of Water & Power Retirement Plan board of administration September 2011 meeting minutes.

The firm had not responded to requests for comment at press time.

“[PCCP partner William] Lindsay said they plan their first closing in the fourth quarter at which time they expect to have approximately $250 million of committed capital with five or six separate investors,” according to the minutes.

The fund will invest in senior floating rate loans up to 70 percent loan-to-value with an expected gross IRR basis of 7.5 percent to 9 percent, according to LADWP documents. The firm would limit its $10 million to $50 million loans to US businesses.

“[PCCP partner Donald] Kuemmeler explained PCCP's sole focus is debt strategy, with floating loans of two to four years on value added real estate. He stated they handle everything in-house, and their philosophy is risk avoidance, safety, and soundness,” according to the September 2011 minutes.

PCCP has invested more than $6.5 billion in US properties. The firm maintains offices in Los Angeles, New York, San Francisco and Sacramento.