Real Capital Solutions Launches $350M Fund to Target Distressed Office Assets
Real Capital Solutions has launched the RCS Contrarian Office Fund, a private investment vehicle seeking $350 million from qualified investors to acquire distressed office properties.
The fund will target Class A and B buildings in primary and secondary U.S. markets. With leverage, RCS expects the vehicle to have approximately $850 million of purchasing capacity.
Founder and CEO Marcel Arsenault will anchor the fund with a $50 million personal commitment.
The strategy will focus on fundamentally strong assets whose values have declined because of higher interest rates, limited financing availability, refinancing pressure and the lingering effects of the COVID-19 pandemic on office use.
“While the office market continues to reset, we believe the long-term outlook for premier office assets is extremely strong,” Arsenault said.
From 2024 through 2026, RCS invested approximately $644 million of its own capital in 14 office properties across 10 U.S. markets. The firm acquired those assets at an average of $116 per square foot, which it said represented about 18% of replacement cost and more than 50% below peak valuations.
Chief Investment Officer Adam Abeln said forced sales, financing constraints and wide gaps between buyer and seller expectations are creating attractive entry points.
RCS said it has generated a 24% realized gross internal rate of return across 177 completed investments since 2008. The figure is before fees, expenses and carried interest and does not necessarily indicate future fund performance.
The Louisville, Colorado-based firm has invested more than $5 billion across over 400 real estate acquisitions since its founding.
RCS currently owns 80 properties and manages more than $2.7 billion in assets.
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