N3 Capital Partners Becomes Pennybacker Capital
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Real Estate Private Equity Firm Plans Austin Move and Announces Inaugural Fund FORT WORTH, Texas--(Business Wire)-- N3 Capital Partners, LLC, a Texas-based real estate private equity firm, announced its new name today: Pennybacker Capital, LLC. Led by Tim Berry, who earlier co-founded N3 Development, Ltd., Pennybacker Capital specializes in opportunistic and value-added commercial real estate investments. Inspiration for the new name and company logo comes from the arched Pennybacker Bridge, a local landmark in Austin, Texas, where the firm is moving its headquarters in October. The firm closed its inaugural fund in December, and plans to invest $250 million in equity over the next four years in middle market real estate projects, with an equity investment size range between $1 million and $20 million per transaction. N3 Opportunity Fund I, the firm's inaugural fund, will primarily focus on the investment in undervalued commercial, mixed-use, multi-family, and raw land real estate assets, primarily through joint ventures with proven, experienced real estate developers. The fund will also invest in non-performing and performing commercial real estate loans. Berry sold his interests in N3 Development, Ltd. to United Development Company in July 2007 at the height of the recent real estate cycle, before forming N3 Capital Partners (now Pennybacker Capital). For more than five years, Berry grew N3 Development, Ltd. into one of the premier retail developers in the country, overseeing more than 70 projects with a total value of more than $300 million. Now at the helm of a new venture, Berry believes that tougher economic times create tremendous opportunity for his firm and its limited partners. Declining real estate valuations and restricted credit are creating a multitude of opportunities for private equity investment in undervalued real estate assets, including multi-family, office, retail, mixed-use and land. Pennybacker Capital "is in the right place at the right time," Berry says. "We are buying irreplaceable assets at the right value, and we are able to do that because of the dislocation in the market." The firm's well-rounded leadership team is unusual for a real estate investment firm because its partners bring operational, legal, restructuring and investment banking expertise to their work. In addition to Berry, Pennybacker Capital's principals are: -- George P. Bush, a corporate attorney formerly with the Dallas office of Akin, Gump, Strauss, Hauer & Feld LLP, where he conducted legal due diligence and prepared transaction documents in connection with mergers, acquisitions, securities filings and divestitures for private equity clients and publicly held corporations; -- Vince Reyna, a Certified Financial Analyst who previously served as vice president and senior underwriter for CIT Corporate Finance, where he analyzed and structured asset and cash-flow based loans to middle market companies; -- Michael O'Malley, a Certified Public Accountant who until recently held dual responsibilities as chief operating officer and chief financial officer at Vision Web, Inc., where he closed six private equity placements and led the company's growth from start-up to a global services provider. For complete bios and more information about Pennybacker Capital, visit www.pennybackercap.com. Balcom Agency Margaret Ritsch, 817-877-9933/817-913-6135 Copyright Business Wire 2008