Rosenthal Launches First Investment Fund

VIENNA, VA-In the first week of February, Rosenthal Properties LLC plans to launch its first investment fund. With the $20-million equity pool the firm expects to acquire between $75 million to $80 million in value-add retail, office and industrial properties in the DC metro area, according to president Glenn Rosenthal.

Already the fund is poised to close on its first deal, Rosenthal tells GlobeSt.com–a $9-million suburban Maryland industry property. “We are actively looking at other prospects as well.”

The fund has raised $5 million in committed capital and expects to raise the additional funds over the next two years, according to Rosenthal. “We are being conservative with the leverage. Our approach will be to generate a long term cash flow.” Other possible investments include joint ventures with institutional firms.

Besides its inaugural fund, Rosenthal, a six-year old private firm here, is in active growth mode. Over the last month or so it has added six shopping centers to its management portfolio–expanding for the first time outside of the DC metro area into the southeast. The firm is manages 800,000 sf in Florida, North Carolina and Tennessee on behalf of Sandmar Properties, a private investment firm in Potomac, MD.

The company also added a new Virginia-based management client during the same time period, Food Processing Suppliers Association. Rosenthal Properties manages FPSA’s 40,000-sf office in McLean.

About two weeks ago, Rosenthal joined forces with Elm Street Holdings and SMC Investments to acquire Featherstone Shopping Center in Woodbridge. The venture purchased the $14.5-million asset from DC’s Douglas Development. With more than 80,000 sf available for lease, the buyers plan to renovate and attract new tenants to the 180,000-sf center.

Prior to that, ASB Capital Management LLC and Rosenthal acquired Spotsylvania Crossing Shopping Center in Fredericksburg from Kimco Realty of New Hyde, NY for $17.6 million. A 140,000-sf shopping center, it is located on Route 3, and anchored by Kmart.