ICM Launches $50M Value Add Fund
ICM soft launches new Fund and raises $13.645 million in three weeks primarily from existing investors to acquire an oceanfront hotel out of receivership
Integrated Capital Management (“ICM”), a private investment management firm founded by real estate finance veterans John Carrick and Robert Lindner, officially announces the launch of Integrated Realty Capital II LP (“Fund”), its fourth investor offering and latest diversified commercial real estate private equity fund which targets light value-add to opportunistic commercial real estate investments across the United States in all asset classes, including student housing, workforce and affordable housing, office, industrial, retail, multifamily, self-storage, senior living, and select drive-time demand limited-service hospitality. The Fund anticipates raising a minimum of $50 million and, similar to its predecessor vehicle, will primarily target GP or Sponsor equity investments averaging approximately $3 million to $5 million per each $50 million to $250 million single asset or portfolio investment opportunity, which results in an aggregated estimated $1.5 billion in total capitalization.
ICM’s lead investment in the Fund is an existing 29-key oceanfront hotel located at 34862 Pacific Coast Highway in Dana Point, California directly across from the sands of Doheny State Beach. The oceanfront property will undergo a full renovation and rebranding in order to create an authentic California luxury boutique hotel experience. The hotel is situated on approximately one acre of irreplaceable oceanfront land in Dana Point’s Capistrano Beach neighborhood and, when completed, will offer its guests beautifully appointed guestrooms including first floor rooms with ocean views and private patios and second floor rooms featuring panoramic ocean views and balconies.
To acquire the distressed hotel asset out of receivership alongside its local operating partner, ICM quickly embarked on a soft launch of the Fund, raising approximately $14 million from returning investors in just three weeks, including large family offices, registered investment advisors, and high-net-worth individuals.
“We are extremely grateful to our investors for their continued trust in us as we thoughtfully build a diversified allocation into commercial real estate on their behalf,” said John Carrick, managing principal and co-founder of ICM. “Acquiring an irreplaceable beachfront property in Southern California at an incredible cost basis is a great way to kickstart our new Fund. In addition to this initial investment, we also invested in an affordable housing portfolio program in the Midwest. This is truly a double bottom-line ESG investment, as it is forecasted to generate a significant return to the Fund while providing much needed affordable housing to families in that market. We expect these investments, as well as the additional investments in our pipeline, to generate significant returns for the Fund and interest from new investors as we look to expand our investor base.”
Shamrock Holdings, Inc. (“Shamrock”), which serves as the investment vehicle for certain members of the Roy E. Disney Family, is one of ICM’s returning investors and is a member of the Fund’s investment committee. “Our investment in ICM’s debut Fund exceeded our expectations, and we are pleased to extend our vote of confidence with an investment in their most recent offering,” said Greg Martin, president of Shamrock.
Robert Lindner, managing principal and co-founder of ICM, added, “As an emerging manager with just under $60 million in equity under management to date, ICM has invested capital through its discretionary investment vehicles into diverse commercial real estate assets with a capitalization of approximately $700 million. Our investments have common themes, including phenomenal real estate locations, experienced sponsors, clear path to value-creation and proforma investment returns over 3 to 5 years that meet or exceed our target goals. The Fund’s first two investments are great examples of investments meeting all of our conditions and more.”
About Integrated Capital Management
Integrated Capital Management (ICM) is a Los Angeles-based investment management firm. Founded by real estate finance veterans John Carrick and Robert Lindner, ICM is privileged to invest a commercial real estate allocation of Disney and several other family offices around the country, as well as multiple registered investment advisors, high net worth individuals and foreign capital sources. Principal investments are capitalized through ICM’s various discretionary private equity offerings and are generally styled to help accomplished owners, operators, and developers of commercial properties scale their platforms and assets under management on a national basis by offering strategic co-investment capital. For more information, visit www.integratedcm.com.