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Jair Lynch Real Estate Partners “Graduates” from Emerging-Manager Status, Receives $200 Million from CalSTRS
February 28, 2018
Jair Lynch Real Estate Partners, a real estate operating and development company in which MacFarlane Partners invested through its Emerging Managers Fund I, has “graduated” from emerging-manager status and has received a $200 million equity commitment directly from the California State Teachers’ Retirement System (“CalSTRS”).
MacFarlane formed the Emerging Managers Fund I (“EM Fund I”) in 2008, with equity from CalSTRS, to invest both in and with early and mid-stage real estate operating companies, focusing on minority- and women-owned firms active in urban and high-density suburban property markets. The fund sought to acquire equity stakes in such companies, nurture their growth and provide them with investment capital for their real estate strategies. Its objective was to incubate the next generation of real estate talent and enable those firms to fully manage property assets for institutional investors.
Jair Lynch Real Estate Partners (“Lynch”) was founded in 1998 by Jair Lynch, a Stanford graduate, a Harvard Graduate School of Design Loeb Fellow, and a silver-medal winner (men’s parallel bars) at the 1996 Summer Olympics. Based in Washington, D.C., Lynch specializes in the socially responsible transformation of walkable urban places and sustainable neighborhoods.
MacFarlane’s EM Fund I invested in Lynch in July 2008. Over the next nine years, Lynch invested in 13 properties in Washington, D.C., and its suburbs in partnership with—and under the guidance of—MacFarlane Partners. Among those investments are the following assets, all of which are located in the District of Columbia:
- Paul Laurence Dunbar Apartments, an affordable senior-housing community in the historically and culturally rich U Street Corridor;
- Anthology, an award-winning rental apartment community that was developed along the popular H Street Corridor;
- 1250, a mixed-use development under construction one block north of Nationals Park in the emerging Capitol Riverfront district; and
- âme of DC, a former Howard University dormitory across from Meridian Hill Park in the Columbia Heights neighborhood that is being renovated as a boutique rental apartment community.
Over the past two decades, Lynch has developed 4.3 million square feet of residential and commercial space valued at more than $1 billion. Another 1.75 million square feet valued at more than $750 million are under construction or renovation.
In marking Lynch’s transition to “emerged-manager” status, CalSTRS noted in its 2018 annual progress report on diversity that “under MacFarlane’s oversight, the success of the Jair Lynch investment opened the window” for the public pension plan to make a new, $200 million commitment directly with the Washington, D.C., firm.
With Lynch’s graduation, the real estate assets in the MacFarlane EM Fund I portfolio have been transferred to a newly formed venture between Lynch and CalSTRS, and MacFarlane has closed the fund in accordance with the fund’s limited partnership agreement.
About MacFarlane Partners
MacFarlane Partners is a real estate investment management and development firm that acquires, develops and manages properties on behalf of some of the world’s largest pension plans and institutions. Founded in 1987, the firm pioneered the urban investment concept among institutional real estate investment managers in the 1990s and today is a leading investor in and developer of properties that promote smart growth, urban revitalization and sustainability in urban and high-density suburban areas nationwide. It is headquartered in San Francisco and operates a regional office in Los Angeles. For additional information, please visit the firm’s website at www.macfarlanepartners.com.
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