New York-based Taconic Capital Advisors, a global institutional investment firm, has closed its third real estate fund, Taconic CRE Dislocation Onshore Fund lll, TCREDF III, with $500 million in capital commitments. The fund comprises investments from a diverse group of existing and new investors with flexibility to tap into an overflow vehicle for more concentrated transactions. 

One year into its investment period, TCREDF III has already committed or closed on $300 million of investments across 15 distinct transactions. Taconic believes the COVID pandemic accelerated pre-existing trends and distress in the CRE market.  

A combination of aggressive pre-COVID financing and transaction assumptions, oversupply in specific markets and COVID-related societal and demographic shifts should continue to apply significant pressure on the CRE market providing ample investment opportunities. Taconic anticipates that hotel and office assets will comprise the majority of the fund’s investments. 

“We are pleased to build on the performance of Funds l and ll with the close of our third real estate fund, TCREDF III,” said James Jordan, principal and portfolio manager of Taconic Capital Advisors’ CRE investments. “Our team has a proven ability to identify inefficiencies and dislocated investment opportunities across a host of market sectors, positioning our funds to maximize value for new and existing investors.” 

Pictured: Taconic headquarters at 280 Park Ave. in Manhattan.