Endeavor closes $610M private equity fund 

Quinn Donoghue |
Source: The Real Deal

Austin-based firm plans value-add investments in some of nation’s hottest markets

A titan of Austin real estate has closed a $610 million private equity fund.

Endeavor Real Estate Group will use the fund, called Endeavor Opportunity Partners III, to invest in value-add real estate ventures in five markets across the country: Austin, Dallas, Charlotte, Nashville and Salt Lake City, with particular interest in Central Texas, according to a news release.

It’s notable that those are some of the nation’s strongest real estate investment markets.

The firm hopes the fund will lead to $1.5 billion or more in added capital. It’s the third and largest fund Endeavor has closed since the company was founded more than 20 years ago.

The fund, which includes over $500 million from private wealth sources, will be geared toward value-add investments in multi-family, industrial, retail and mixed-use. The capital will be used for acquisitions as well as development, along with other potential real estate maneuvers, totaling up to 25 investments.

“We have a historical track record of strong performance over multiple cycles,” Endeavor managing principal Bryce Miller said. “We maintain comfortable risk levels, we’re flexible with our investment strategy and patient, but we won’t be shy about putting capital to work when the market presents opportunities.”

Endeavor is at the helm of some of the largest development projects in Austin. It plans to redevelop the former Austin American-Statesman site on South Congress Avenue into a 19-acre complex with over 1,300 residential units, 1.5 million square feet of offices, a 275-room hotel and 150,000 square feet of retail and restaurant space. 

Endeavor is also seeking approval to convert the 71-acre, former Borden Dairy site in East Austin into 1,400 residential units, about 400,000 square feet of office, more than 100,000 square feet of retail and a 220-room hotel.