Midsouth Capital Fund
In late 2010, the Midsouth Capital Fund I, LLC was formed to target approximately $100 million in real estate investment opportunities throughout the Mid-south region including Tennessee, Kentucky, north and central Alabama, Mississippi and Arkansas, with a special focus on Memphis and Nashville. Equity capital committed stands at $45 million, with Boyle Investment Company and related entities contributing more than $10 million of the total.
“The Midsouth Capital Fund takes advantage of the unique real estate investment climate in which capital is scarce and liquidity needs in the marketplace are providing attractive acquisition opportunities,” said Henry Morgan, President of Boyle Investment Company. “Investors are taking advantage of the potential greater returns offered by high-quality real estate in what is becoming an inflationary environment. The fund enables investors to maintain a more diverse deployment of their capital and to react quickly to these real estate investment opportunities. More than $200 billion of commercial mortgages are slated to mature in 2011 alone and that number will grow significantly until it peaks in 2014.”
The fund is targeting high grade income producing properties and the majority of the initial investors are from the Middle Tennessee and Memphis regions. Boyle and its affiliates handle management and leasing of the properties depending upon geographic location. In the Memphis area, the fund is concentrating on properties within the Poplar corridor.
The first acquisition in the Memphis region was the purchase of the 200,000-square-foot, mixed-use Germantown Village Square. Boyle’s office team is handling management and leasing of the 60,000 square feet of office space at the center, where 30,000 square feet of office space is currently available for lease. Existing office tenants include Methodist Healthcare and Crye-Leike. The first Midsouth Capital Fund transaction in the Nashville region was the acquisition of a 43,000-square-foot, three-story office building located in Goodlettsville.