The former chief executive of Arden Realty and another investment pro have formed a joint venture that is seeking to raise at least $50 million of equity for a value-added fund that would buy office properties in the Western U.S.

The sponsors of the joint venture, called Palisades Mexico Partners, are Joaquin de Monet and Sergio Arguelles. De Monet, the former Arden executive, formed his own firm, Palisades Capital Realty of Los Angeles, a year ago. The fund, Palisades Private Capital Fund 1, would shoot for a 15% return by acquiring Class-A and -B office buildings in suburban markets in the Southwest, Southern California, the Pacific Northwest and Texas. The average projected occupancy rate at acquisition would be 75%. The fund would buy stabilized buildings to generate income until value-added and opportunistic investments gain traction.

Read the full article here