SunBridge Capital Management LLC has bought a stake in Peaceable Street Capital (PSC), a commercial property investment company, to help the target with plans for growth. The target is co-owned by Orangewood Partners and now SunBridge.
PSC, based in Philadelphia, is a financing vehicle investing in small and mid-sized income producing real estate. PSC targets U.S. and Canada-based equity investments ranging from $1 million to $20 million per transaction. The target focuses on a variety of real estate properties, including: real estate assets such as: retail, office, mobile home parks, multi-family, self-storage, industrial, RV parks, parking, healthcare and hotels. PSC has previously invested in Abbell Associates, Apple Self Storage and Athena Real Estate.
SunBridge, formed with capital from the Bainum family, is a privately held investment management company based in Chevy Chase, Maryland. The firm targets public and private real estate companies serving a variety of sectors, including: hospitality, self-storage, insurance, financial services, and construction. SunBridge seeks to collaborate with management teams with a long-term strategy.
Orangewood is a New York-based private investment firm that targets long-term equity and credit and investments in public and private businesses. The firm was founded in 2015 by Alan Goldfarb, a former principal at the Carlyle Group LP (Nasdaq: CG). In Oct. 2016, Orangewood acquired a majority stake in metal fabricator George Industries LLC and the firm also invested in cell phone tower owner K2 Towers.
The real estate sector is drawing interest from strategic buyers and private equity firms. Just recently, Jaguar Growth Partners closed a $350 million private equity fund to focus on real estate-related investments. Other recent deals include: GI Partners’ $276 million deal to buy Seattle office space Komo Plaza from real estate investment firm Hines Interest LP; Vail Resorts Inc.’s (NYSE: MTN) $1.05 billion purchase of Canada’s largest ski resort Whistler Blackcomb Holdings Inc., in addition to the target’s two real estate development projects; and Sam Nazarian’s SBE’s acquisition of Morgan Hotel Group Co., an operator of the Mondrian hotel properties.
Fried, Frank, Harris, Shriver & Jacobson LLP and Reed Smith LLP served as legal counsel to PSC, while Perella Weinberg Partners LP served as financial adviser. Arent Fox LLP served as legal counsel to SunBridge Capital.