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Kenwood office owner using amenities to lure employees to the building

Cincinnati Business Courier
August 1, 2022

Viking Partners LLC, a Sycamore Township-based private equity real estate investment firm, has closed on its fifth and largest fund.

Viking Partners closed on Fund V, its fifth value-add real estate fund, on Feb. 10 at $130 million. That exceeded the firm’s goal of $125 million in only five months.

Peter Kelly, director of fundraising at Viking, said the firm was able to surpass its goal because this is a good economic climate for fundraising and Viking has a solid track record of providing returns for its investors. With this fifth fund, Kelly expects Viking will be able to make about $400 million in acquisitions.

“We are incredibly proud of our track record, but we’re also thankful for the trust and confidence of our investors,” Kelly told me. “They make it happen for us.”

Viking was able to grow its investor group with its fifth fund. More than 70% of investors in Fund V have invested in one or more of Viking’s previous funds, which in the aggregate have made about $1.2 billion in property acquisitions. Viking has already deployed a portion of this fifth fund. Fund V has acquired three properties for a total of $91 million. The assets include a 314-unit apartment property in Fort Worth, a 248-unit apartment building in Dallas and Spartan Square, a Kroger-anchored retail center in Salem, Va., it purchased in a joint venture with Essential Growth Acquisition Properties (eGap) Funds.

“It’s nice to already put that money to work,” Kelly said.

The Spartan Square purchase represents Viking’s first retail investment since 2018. Prior to the pandemic, Viking had moved away from retail real estate, but Kelly said this Kroger-anchored development with a long-term lease was too good to pass up.

“We all knew this was something we really wanted,” Kelly said.

Bret Caller, founder and principal of Viking, said with this fund, the firm “will continue to focus on real estate assets that will benefit through our hands-on leasing, management and/or redevelopment.”

Viking targets office/flex, multifamily, mixed-use, industrial, hotel and retail properties between $10 million and $50 million, as well as sub-performing or non-performing loans secured by those assets. Target markets include the Midwest, Southeast, Southwest and Mountain West regions of the U.S.

Since closing its first fund in 2010, Viking has raised a total of $400 million, primarily from high-net-worth individuals. It is currently seeking acquisition opportunities. The company was founded in 2008 by Caller and Steven Miller.