Real Capital Solutions launches ‘contrarian’ fund for distressed offices

LOUISVILLE — Real Capital Solutions, the Louisville-based real estate investment company run by Marcel Arsenault, recently launched its RCS Contrarian Office Fund, an investment vehicle for financially distressed office properties in markets around the country. 

“Building on the firm’s long-standing contrarian investment philosophy, the Fund will target fundamentally strong office assets whose valuations have been reduced by higher interest rates, constrained capital markets, refinancing pressures, and the long-tail economic impacts of COVID-19,” RCS said in a news release. “The Fund is targeting $350 million in commitments from suitably qualified investors, and with leverage will have the capacity to acquire approximately $850 million of assets.”

Arsenault is committing $50 million to the fund and will serve as its anchor investor. 

“At RCS, we’ve spent more than four decades investing outside the consensus and finding highly attractive opportunities that other investors overlooked,” Arsenault said in the release. “The RCS Contrarian Office Fund reflects that same philosophy, giving investors access to what we believe is another generational opportunity to acquire institutional-quality office assets at valuations that can create compelling long-term value. While the office market continues to reset, we believe the long-term outlook for premier office assets is extremely strong. Companies still need high-quality workplaces to attract talent, foster innovation and drive growth, and those assets will continue to outperform over time.”

For the past several years, Arsenault has said that distressed commercial real estate assets will be increasingly ripe for the picking by savvy investors. This philosophy has driven RCS’ prolonged acquisition spree. 

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